YOUR MORTGAGE IS A TAX WRITE-OFF, DID YOU KNOW?

A mortgage is a tax write-off because it allows homeowners to deduct the interest paid on their mortgage from their taxable income. This can result in significant savings for homeowners, especially for those who have a high mortgage balance or high mortgage interest rate.

The Internal Revenue Service (IRS) allows homeowners to deduct the interest paid on mortgages up to $750,000 for mortgages taken out on or after December 15, 2017. For mortgages taken out before December 15, 2017, the limit was $1,000,000. This means that if a homeowner has a mortgage balance of $600,000 and an interest rate of 4%, they can deduct $24,000 from their taxable income.

It’s important to note that the mortgage interest deduction is only available for primary residences, and for mortgages that were used to buy, build, or improve a home. Additionally, the mortgage interest deduction is only available for the first $750,000 of the mortgage balance.

To claim the mortgage interest deduction, homeowners need to itemize their deductions on their tax return. This means that they will need to fill out Schedule A of their Form 1040 and provide information about their mortgage interest payments.

In summary, a mortgage is a tax write-off because it allows homeowners to deduct the interest paid on their mortgage from their taxable income. This can result in significant savings for homeowners, especially for those who have a high mortgage balance or high mortgage interest rate. However, it’s important to note that the mortgage interest deduction is only available for primary residences and for mortgages that were used to buy, build, or improve a home, and for the first $750,000 of the mortgage balance.