|
Posted by Bill Brown on July 15, 2007, 3:09 pm
Please log in for more thread options
> We live in VA, however have a 2nd home in SC. Our CPA will
> not allow us to deduct the interest paid on the home in SC
> agents our personal income in the area of federal taxes.
If it is your only second home mortgage interest is
deductible on Schedule A (subject to the $1,000,000
acquisition indebtedness and $100,000 equity indebtedness
limits). If this is your 3rd (or greater home) there is no
additional Schedule A deduction for interest and there is no
option of adding the interest paid to your basis.
> He tells us that we can only apply it to the home itself,
> and acquire the deductions when we sell it.
>
> I find this odd, especially when I can write-off my first
> home, as well as the other lot that I own next to our first
> home lot(that lot was acquired after the 2nd home), however
> my 2nd home can not be applied to my income to help reduce
> taxes which is why I bought it in the first place.
For every $100 you pay in mortgage interest you save a max
of $35 in federal income taxes. If that was your only reason
for purchasing the property then you are losing money.
> We have this feeling that our CPA is wrong, because we have
> found things in the past that we could write-off and he did
> not know about it or something.
How many times will you allow him to be wrong before you
find another tax preparer?
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap