Is mortgage interest deductible for my 3rd home?
Hi,
I bought my 1st house in 04/1998, and lived in it until I sold it within 02/2002. I had been getting mortgage interest dedcutins on it.
I bought my 2nd house within 03/2002 and had been living surrounded by it until now. I had be getting mortgage interest dedcutions on it also.
I am now considering "selling" my current home and moving to a larger home, which will be my 3rd house. My friend tells me that I wont be capable of deduct my mortgage interest on my the 3rd home I am planning to buy after selling the second house.
Reason: My friend tells me I am not a first time homebuyer. He say only first and second houses get mortgage presumption benefit. if you want to deduct mortgage of your 3rd home you will have to go your 2nd house and live in a rental for two years to qualify.
Question:
Above reasoning looks quite bizarre to me. I had not been owning multiple houses at like peas in a pod time. I had only be upgrading as I can afford. what are the rules? and what are my possible options.
Answers:
Two things.
One you hold to ask yourself, tax deduction on your mortgage payments or the due waiver for profits after you sell a home?
In some states profits from the the sales of your home can be waive of taxes up to a certain amount if you live there long adequate. This has nothing to do near tax deduction.
Any home where on earth you pay a mortgage the interest is tax deductible.
Secondly first time home buyers doesn't really thing in most cases, rates and rules usallly applies in relationship to primary residences, second homes, or investment homes.
Best suggestion is to verbalize to your local accountant in terms of taxation for the sale of your home, in some states a timely sales and repurchase of another home can prevent you from have to pay taxes for the sales of your home.
Even ask a realtor, they will know which is the best theory.
Congratz on your new home
Suggestion:
Always check out rates to make sure you are getting the best contract. BofA is currently offering some great prices for mortgages, check them out first. =o) Source(s): myself<--- Banker (a) BofA (415)622-4327
yes its a deduction.
Mortgage Interest is deductible regardless of it being your 1st or 10th home. There are some programs out at hand for first time home buyers that limit you to not having owned a home for several years, and that may be what your friend be thinking of.
When you file taxes, bring the HUD Settlement statement for any mtg transactions for that year (purchase or refi) and the tax professional may know how to find additional deductions. The HUD is the statement that list all the fees of that transaction (points, atty fees, etc)
Good Luck!
yes
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My 70-year-old aunt just refinanced AGAIN for a 30-year mortgage. Who expects to be paying at mortgage at 100? Anyway, after doing some research I have intellectual that she has refinanced about...
I bought my 1st house in 04/1998, and lived in it until I sold it within 02/2002. I had been getting mortgage interest dedcutins on it.
I bought my 2nd house within 03/2002 and had been living surrounded by it until now. I had be getting mortgage interest dedcutions on it also.
I am now considering "selling" my current home and moving to a larger home, which will be my 3rd house. My friend tells me that I wont be capable of deduct my mortgage interest on my the 3rd home I am planning to buy after selling the second house.
Reason: My friend tells me I am not a first time homebuyer. He say only first and second houses get mortgage presumption benefit. if you want to deduct mortgage of your 3rd home you will have to go your 2nd house and live in a rental for two years to qualify.
Question:
Above reasoning looks quite bizarre to me. I had not been owning multiple houses at like peas in a pod time. I had only be upgrading as I can afford. what are the rules? and what are my possible options.
Answers:
Two things.
One you hold to ask yourself, tax deduction on your mortgage payments or the due waiver for profits after you sell a home?
In some states profits from the the sales of your home can be waive of taxes up to a certain amount if you live there long adequate. This has nothing to do near tax deduction.
Any home where on earth you pay a mortgage the interest is tax deductible.
Secondly first time home buyers doesn't really thing in most cases, rates and rules usallly applies in relationship to primary residences, second homes, or investment homes.
Best suggestion is to verbalize to your local accountant in terms of taxation for the sale of your home, in some states a timely sales and repurchase of another home can prevent you from have to pay taxes for the sales of your home.
Even ask a realtor, they will know which is the best theory.
Congratz on your new home
Suggestion:
Always check out rates to make sure you are getting the best contract. BofA is currently offering some great prices for mortgages, check them out first. =o) Source(s): myself<--- Banker (a) BofA (415)622-4327
yes its a deduction.
Mortgage Interest is deductible regardless of it being your 1st or 10th home. There are some programs out at hand for first time home buyers that limit you to not having owned a home for several years, and that may be what your friend be thinking of.
When you file taxes, bring the HUD Settlement statement for any mtg transactions for that year (purchase or refi) and the tax professional may know how to find additional deductions. The HUD is the statement that list all the fees of that transaction (points, atty fees, etc)
Good Luck!
yes
Related Questions:
Can a human being (age 70) w/ discouraging credit and multiple refinances on their home be eligible for a reverse mortgage?
My 70-year-old aunt just refinanced AGAIN for a 30-year mortgage. Who expects to be paying at mortgage at 100? Anyway, after doing some research I have intellectual that she has refinanced about...