Earlier this year, I noted in this blog that the home mortgage interest deduction “marriage penalty” ambiguity that had previously existed under the Internal Revenue Code (“IRC”) was apparently left unresolved in Congress’s haste to enact tax reform. Now that a few months have passed since passage of the sweeping federal tax overhaul known as the Tax Cuts and Jobs Act, the … [Read more...] about Will the new “pass-through entity” tax deduction affect how savvy investors acquire real estate?
Back in 2013, I wrote in this blog about some surprising restrictions on the home mortgage interest deduction. In one of the instances noted, two unmarried persons, who together owned two houses that otherwise qualified for this deduction, each claimed the maximum amount of the deduction for the mortgages they had jointly taken out on those homes. The U.S. Tax Court rejected … [Read more...] about IRS backs down over home mortgage interest deduction limits
One of the most popular and well-known advantages of home ownership is the income tax deduction you can take for the interest you pay on your home mortgage. Less well known, however, are the limitations placed on this deduction. In Silicon Valley, where home values and the mortgages used to acquire those homes are significantly higher than in many other areas of the United … [Read more...] about Unsuspected Limits on the Home Mortgage Interest Deduction