Home Mortgage Interest Deductions (Currently Unavailable)

Author: Eva Rosenberg

The home mortgage deduction is actually a lot more complicated than you realize. Especially in a world where clients refinance repeatedly to consolidate loans, to get lower interest rates, to pull cash out of appreciated homes to make other investments. Or the buyer’s credit doesn’t qualify so parents are on title and on the loan.

Advance Preparation: Read IRS Publication 936

Publication Date: July 2015

Designed For
Tax practitioners at all levels regardless of tax practice who want to understand exactly how much of the mortgage interest is deductible on Schedule A (or elsewhere on the return). And who want to know what to ask clients so the tax pro doesn’t get blind-sided in an IRS audit, to learn their client’s mortgage isn’t acquisition debt.

Topics Covered

• Acquisition Debt and Home Improvements
• Equity Debt
• Secured Debt
• Qualified Home
• Dollar Limits
• Interest during construction
• Will the real owner please stand up!
  -When the owner isn't on the title or on the loan
  -Beneficial or equitable owner
• Refinances
• Multi-use homes
• Time shares and Multiple homes
• Reverse Mortgage
• Points

Learning Objectives

• Recognize how to maximize the amount of home mortgage interest legally deductible.

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None