Mortgage Interest Deduction Calculator for 2011, 2012

Your mortgage interest is a tax deduction you deserve to claim. Mortgage interest is any interest you pay on a loan you have for your primary home or second home. The loan has to be for the place you are living in.

I know that sounds funny but, it can’t be for a shed on your property without plumbing. It qualifies as a living place if it has cooking facilities, a sleeping area and indoor plumbing for going to the restroom. You could claim your boat if it has the three above mentioned qualifiers.

Guidelines to Follow to Claim Mortgage Interest as a Tax Deduction

Make sure you obey the guidelines when you claim a mortgage interest deduction. If you took out the loan before Oct.13, 1987 it is considered “grandfathered” debt because the laws changed after that time. Keep in mind your filing status will also affect the amounts you can claim. The fair market value of your home is what your loan should be based on. The mortgage interest claim does have dollar amount limits. Turbo Tax will be able to run the numbers for you to get the exact dollar amounts for your personal filing status.

Questions You May Have About Deducting Mortgage Interest

What qualifies as mortgage interest? Will a mobile home be allowed as claim for mortgage interest? Will I be able to claim the interest on a trailer? How much interest can I deduct? I live in a condominium, is that considered a home? Does it have to be a loan with a specific company to claim the mortgage interest? What happens if I borrowed from the equity and now the loan is for more than the value of the home? What documentation will I need to gather together?

Mortgage Interest Deduction Calculator

If you have a lot questions like I did about your mortgage interest tax deduction and would like to use a calculator, then give TurboTax Online a try. They have great tools for calculating this for you. If you would like the answers to your questions, try using the tax deduction calculator. They are rated the #1 for tax preparation software. It always gives us peace of mind to consult a company we know we can trust.