Three Tax Deductions for Mortgage Interest

Being a homeowner allows you to qualify for deductions on your mortgage interest. Take advantage of this opportunity if you’ve purchased a house or pay interest on mobile homes, condos, or other places of residence.TaxDeductionPic

Property Tax

Putting money into your home allows you to treat the purchase as a future investment. Having “imputed rent” can be omitted from your taxable income. In this situation, it allows the taxpayer to be both a landlord and renter with the responsibilities of each.

Mortgage Interest

Itemizing deductions may allow taxpayers to reduce taxed capital by deducting interest paid on their place of residence. This deduction is limited to the interest on debt acquired to purchase a residence. Homeowners may also deduct interest paid toward home equity regardless of borrowed funds.

Selling Your Residence

If the taxpayer has lived in a residence for over two out of the last five years, the property is considered their primary residence. And if they have not gained any capital gains on their home they may sell the house and exclude the profit from their taxable income. In normal situations, taxpayers would generally have to record and submit the profit made from selling their goods, but in this situation the homeowner is exempt.


Finding deductions to use toward your homeownership can seem overwhelming. Finding the right tax deduction that fits your type of residence is vital to making the most out of your tax return.

Image credit: investmentzen

About Shoreline CPA

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • Huddleston Tax CPAs / Huddleston Tax CPAs – Shoreline, WA
    Certified Public Accountants Focused on Small Business
    18208 66th Avenue NE, Suite 102 Kenmore, WA 98028

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Federal Way, Des Moines, Kent, Auburn, and communities throughout WA and beyond. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.