Is there an income limit on tax deduction on interest from a mortgage? (loan, property tax)

[pinipig523]

Is there an income cap for tax deduction of interest from a mortgage?

Is there any other red tape into getting the deduction?

We just found out that we cannot deduct student loan interest because of what we make - and I didn't want to be blind-sided this time around.

Thanks.

[pinipig523]

I just checked online and could not find any income limitations. I did find that the house cannot be over $1mil - so that's not an issue for me because I don't plan on spending that much.

Any ideas on whether there is a limit on income before you are ineligible for the property tax and interest on mortage to be deducted from your AGI (annual gross income)?

[Elke Mariotti]

Originally Posted by pinipig523

I just checked online and could not find any income limitations. I did find that the house cannot be over $1mil - so that's not an issue for me because I don't plan on spending that much.

Any ideas on whether there is a limit on income before you are ineligible for the property tax and interest on mortage to be deducted from your AGI (annual gross income)?

The purchase price has nothing to do with deductibility - it's the size of the mortgage. And it's not just about the amount - there's more to it than that.

The Alternative Minimum Tax can reduce or entirely eliminate use of itemized deductions - depends on the combination of income (and type of income) and total of itemized deductions (this is a very simplified explanation).

The days when you could say "my RE taxes and mortgage interest are fully deductible" are history! IMHO this question should be asked of a qualified professional who is familiar with access to your entire financial picture, or at least your income/expenses, because otherwise the answer will simply be: "IT DEPENDS" and it does

[mathjak107]

You can deduct interest payments on an existing mortgage of as much as $1 million whether or not you must pay the A.M.T.But the A.M.T. wont allow any deduction for interest payments on a home equity loan when loan proceeds are used for purposes other than home improvements.”