Discussion:Mortgage interest deduction.
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Discussion Forum Index --> Tax Questions --> Mortgage interest deduction.
| 6 March 2007 | |
| Taxpayer has mortgage for purchasing main home of 140,000.00 and a line of credit used to consolidate other bills of 115,000.00. I know that interest is fully deductible on the 1st mortgage(under a million) and is only deductible up to 100,000.00 on the line of credit. If the
taxpayer refinances both loans into one 1st mortgage is the interest then fully deductible? | |
| 6 March 2007 | |
| I disagree...refinancing does not change the deductibility of the interest...same rules apply. | |
Death&Taxes (talk|edits) said: | 6 March 2007 |
| No: See Publication 936 They will be in the same place as before, with 140K of acquistion debt and 100K of what is considered equity debt. | |
| 6 March 2007 | |
| Would it make any difference if the total of the refinance was less than the origional purchase price? | |
Michaelstar (talk|edits) said: | 6 March 2007 |
| No it would not make a difference. This t/p is only consolidating two debts into one. The original purposes for the debts themselves has not changed. I agree with both Glmpllc & D&T - $140k/acq debt, $100k equity (subject to alt min add back) and $15k debt/personal. | |
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