Your Mortgage Interest Deduction is Worthless (Probably)

Like, Comment, and Share my videos!
🔔 SUBSCRIBE HERE 🔔 http://bit.ly/BroeSubscribe

💯 LET’S CONNECT 💯
📷 Instagram @JakeBroe 👉   / jakebroe  
🐦 Twitter @Broe_Jake 👉   / broe_jake  

Check out my entire playlist on buying a home here:
   • Buying a Home  

👇 👇 Watch My Other Videos Here 👇 👇
★ 15 Year vs 30 Year Mortgage - Your Money Explained
   • 15 Year vs 30 Year Mortgage - Your Money E...  
★ How to Pay Off Your Mortgage Early - Fastest Method Explained
   • How to Pay Off Your Mortgage Early - Faste...  
★ VA Loan Explained - Understanding the Full Process
   • VA Loan Explained - Understanding the Full...  


📷 📷 My YouTube Equipment 📷 📷
► My Camera 👉 https://amzn.to/2UZpFwA
► My Wide-Angle Lens 👉 https://amzn.to/2Qwf3Sq
► My Wireless Microphone 👉 https://amzn.to/2QBV9W0
► My Shotgun Microphone 👉 https://amzn.to/36bdLTv
► My Lighting 👉 https://amzn.to/2F5Ey7V
► My Light Diffusers 👉 https://amzn.to/2tjF8fG

================

📚 📚 Books That Changed My Life 📚 📚
📗 How to Win Friends & Influence People 👉 https://amzn.to/2F3ahGC
📕 Dumbing Us Down 👉 https://amzn.to/2spodrZ
📘 Quiet - The Power of Introverts 👉 https://amzn.to/36b2ti3
📙 The Red Queen 👉 https://amzn.to/2QzNW8W
📔 Rich Dad Poor Dad 👉 https://amzn.to/3bliFyP
📒 Why Nations Fail 👉 https://amzn.to/3fWZ3Em

================

What Is a Mortgage Interest Deduction?
The mortgage interest deduction is a common itemized deduction that allows homeowners to deduct the interest they pay on any loan used to build, purchase, or make improvements upon their residence, from taxable income. The mortgage interest deduction can also be taken on loans for second homes and vacation residences with certain limitations. The amount of deductible mortgage interest is reported each year by the mortgage company on Form 1098. This deduction is offered as an incentive for homeowners.

How the Mortgage Interest Deduction Works
Home mortgage interest is reported on Schedule A of the 1040 tax form. Mortgage interest paid on rental properties is also deductible, but this is reported on Schedule E. Home mortgage interest is quite often the single itemized deduction that allows many taxpayers to itemize; without this deduction, the remaining itemized deductions would not exceed the standard deduction. Interest from home equity loans also qualifies as home mortgage interest.

Qualifications for a Full Mortgage Interest Deduction
Many times homeowners can deduct the entirety of their mortgage interest paid, as long as they meet all requirements. The amount allowed for the deduction is reliant upon the date of the mortgage, the amount of the mortgage, and how the proceeds of that mortgage are used.

As long as the homeowner’s mortgage matches the following criteria throughout the year, all mortgage interest can be deducted. Grandfathered debt, meaning mortgages taken out by a date set by the Internal Revenue Service (IRS) qualifies for the deduction.

Mortgages that the homeowner or their spouse, if filing jointly, took out after the “grandfathered debt” date to buy, build, or improve the home can qualify. However, said mortgages throughout the tax year, along with any grandfathered debt, totaled no more than $1 million. For married couples filing separately, the limit is $500,000 or less.

For mortgages that a homeowner or their spouse (again, if filing jointly) took on after the “grandfathered debt” date as home equity debt (but not as home acquisition debt) totaling no more than $100,000 – or if filing separately and married $50,000 and under throughout the tax year – the mortgage interest can qualify for the deduction if the debt also did not total more than the fair market value of the home after certain adjustments.

The mortgage interest deduction can only be taken if the homeowner’s mortgage is a secured debt, meaning they have signed a deed of trust, mortgage, or a land contract that makes their ownership in qualified home security for payment of the debt and other stipulations.

================
#PayOffYourHome #MortgageInterestDeduction #Taxes
================

DISCLAIMER:
This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.

ADVERTISER DISCLOSURE:
Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support!