Resource Description:

Questions answered by the resource:

Answers to frequently asked questions regarding some of the expenses that are available for deductions.

• What can I deduct from the settlement statement for a home purchase?

• I have a mortgage for my primary residence and a second mortgage for land that I intend to build a home on. Can the interest be deducted for the second mortgage?

• I paid my mother's mortgage and real estate taxes last year. The house is in her name. Can I deduct the mortgage interest and property tax on my tax return?

• My daughter and I own a house together. Her name is on the mortgage, but both our names are on the deed. Can we each claim half the yearly interest and property tax on our income tax returns?

• Is interest on a home equity line of credit deductible as a second mortgage?

• I refinanced my home last year and paid points. Are they all deductible this year?

• Is the interest paid on the loan for a lot (with no home on it) deductible as mortgage interest?

• Is interest paid on a construction loan for a new home considered deductible mortgage interest?

• I got a loan to buy some land. Later I got another loan for the construction of the house. After the house was built I got a third loan which paid off the first two loans. Is the interest on any of these loans deductible?

• I pay interest on money borrowed to purchase land. I built a home on that land, but have no mortgage. Is the interest I pay for the land deductible? Where is it deductible on the return?

• I took out a home equity loan to pay off personal debts. Is this interest deductible? Where do I enter this amount on my tax return?

• If I borrow money from my 401(k) to purchase a home, is the interest I pay back to my 401(k) deductible as mortgage interest on my 1040?

• May I deduct my home improvements and repairs to my home?

• Our home was seriously damaged by flooding last year. Are there special provisions for claiming a loss since our home is located in a declared disaster area?

• Our garage caught fire this last July. Can we claim a loss on our income tax return?

• Is personal credit card interest tax deductible?

• Is the mortgage interest and property tax on a second residence deductible?

• I bought a 5th wheel for vacationing. Can I deduct the interest on the loan for this 5th wheel? Where would it be listed?

• What are the rules for mortgage interest on a manufactured home?

• Can I deduct the interest on the mortgage for the manufactured home if it is on a rented lot?

• Can I deduct the interest for the manufactured home and for the lot if I buy a lot for the home?

• I refinanced my home and paid closing costs. Are the loan origination fee, appraisal fee, document prep fee, closing fee, and title insurance or any of the other expenses deductible? Are any of the fees I paid to the bank for the loan deductible?

• I refinanced my home mortgage and had to pay $2,000.00 worth of points to get the mortgage. Can I claim these points as a deduction on my tax return?

• If the IRS says I must deduct points over the life of my mortgage, and I have a 30 year mortgage, does this mean that I divide the points paid by 30 and enter that amount on Schedule A?

• I refinanced my house once and paid $1,230 in points. On Schedule A, line 12 (points not reported on Form 1098) I have listed $41 each year. I refinanced my home again and paid off the entire previous loan including the points. Am I entitled to include the $984 (remaining points paid off) on Schedule A this year?

• I took out a second mortgage and received a form with my mortgage interest on it but it has no points. Under the points section it states to check with your original lender. Can I still claim those points? If so, how do I get a form stating them?