Friday, March 6, 2009

How to Claim Mortgage Interest Tax Deduction

This article describes how you can benifit from claiming Mortgage Interest Tax Deduction. If any of your property transactions involve buying, selling, leasing or paying property tax, then you can avail Mortgage Interest Tax Deduction.

Mortgage and real estate interest can be directly deducted from taxable income. You will need to fill form 1098 which contains the mortgage interest statement. Form 1098 should be filled to show your total mortgage interest paid and mortgage interest points earned. 

Mortgage interest are deductible for loans of upto $1000,000 if applying as single individual and $500,000 if applying jointly. 

Mortgage tax deduction rates in 2009 are 28% of the total mortgage interest paid for families earning below $250,000. 

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