Discussion:INTEREST ALLOCATION OF HOME OFFICE

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Basic Tax Questions --> INTEREST ALLOCATION OF HOME OFFICE


Discussion Forum Index --> Tax Questions --> INTEREST ALLOCATION OF HOME OFFICE

TAXBILL (talk|edits) said:

3 February 2009
HAVE A CLIENT THAT QUALIFIES FOR A HOME OFFICE DEDUCTION. THE INSTRUCTIONS ON FORM 8829 STATE THAT QUALIFIED MORTGAGE INTEREST ON LINE 10 ONLY INCLUDE INTEREST THAT BENEFITS THE HOME. IT STATES NOT TO INCLUDE MORTGAGE INTEREST THAT DOES NOT BENEFIT THE HOME SUCH AS A HOME EQUITY LOAN USED TO PAYOFF CREDITCARD BILLS, OR PAY FOR A CAR. IN PUBLICATION 587 IT STATES YOU CAN INCLUDE A SECOND MORTGAGE FOR THIS CALCULATION AND DOES NOT STATE WHETHER THE LOAN NEEDS TO BENEFIT THE HOME OR NOT. I'M CONFUSED SINCE BOTH OF THESE STATEMENTS CONFILCT WITH EACH OTHER.

ANY SUGGESTIONS????

Taxea (talk|edits) said:

3 February 2009
please fill out your profile page taxea

CATAXES (talk|edits) said:

3 February 2009
2nd mortgage (or 1st or 3rd or 5th??) needs to be acquisition debt or improvement debt to be included in home office interest. Doesn't matter what number it is it needs to be for purchase/improvement of home.

To join in on this discussion, you must first log in.
Personal tools