What is home equity debt? Is there an interest and property tax deduction I can take? If so, how many years back can I claim them?
You can only claim the interest and property tax deduction in the year in which you paid the taxes. You’ll claim these as itemized deductions on Schedule A.
The mortgage interest deduction for home acquisition debt is limited to the interest on $1 million. The limit is $500,000 for married filing separately. Home acquisition debt is a mortgage taken out after Oct. 13, 1987, on a qualified home to:
- Buy the home
- Build the home
- Substantially improve the home
The mortgage interest deduction for home equity debt is limited to the interest on the lesser of these:
- 100000 — or 50000 if married filing separately
- The total of the home’s fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt
Can you take a deduction for a business loss? Learn more from the tax experts at H&R Block.
As a young adult, or millennial, you might be new to the tax game. Here are tax deductions for young adults -- plus some tax credits too -- so you can...
Can you deduct a gas mileage expense for travel to and from college? Learn more from the tax experts at H&R Block.
Will the IRS give you a tax reimbursement on gas? Learn more from the tax experts at H&R Block.