P-I-T-Y! I mean really, Bro… too bad.
You are missing out on THOUSANDS of dollars! People who OWN a home, get tons of Mortgage Tax Deductions you don’t… just for living in a HOME! Haven’t you ever heard the saying, “Buy a House Get a Raise!”
Mortgage Interest Deduction:You may not deduct interest on more than $1,000,000 of home acquisition debt for your main home and secondary residence. Home acquisition debt means any loan whose purpose is to acquire, to construct, or substantially to improve a qualified home. The limit is reduced to $500,000 if you are married filing separately.Use the worksheet on page 11 of Publication 936 to calculate the allowable mortgage tax deduction.
Suppose you qualify for the Mortgage Tax Credit (MCC) and obtain a 30-year, 4% fixed-rate mortgage of $125,000. The first year’s interest payment is approximately $4,960. The MCC allows you to take a federal income tax credit of $1,488 ($4,960 x 30%) for that year.
If your federal income tax liability is $1,488 or more after you have taken all other credits and deductions, you receive the entire benefit of the MCC tax credit – $1,488. In figuring your taxes, you also claim a deduction for the remaining 70% of your mortgage interest.