Mortgage Interest Tax Deduction 2011, 2012

If you're a homeowner, then you'll want to be sure to learn more about claiming the mortgage interest tax deduction. You can usually deduct the interest you pay on a mortgage for your main home or a second home.

The interest on your home mortgage can fall into two different categories. Interest deductions on homes are limited. The tax law allows taxpayers to deduct interest on two categories of indebtedness.

One type of home mortgage interest tax deduction stems from the home acquisition loan which is defined as, to buy, build, or substanially improve a residence and cannot exceed $1,000,000. The other type of mortgage interest tax deduction credit stems from the home equity debt and that is defined as any debt that is other than the home acquisition debt and cannot exceed $100,000.

For your mortgage interest to be deductible it must meet these rules.

• The debt must be secured by the residence
• Your interest on no more than two residences
• You are personally obligated for repayment of the debt

For the IRS, a home can be a house, condominium, cooperative, mobile home, boat, recreational vehicle, or similar property that has sleeping, cooking, and toilet facilities.

Your home mortgage must be secured by your main home or your second home. You can't deduct interest on a mortgage for a third home, a fourth home, and so on. If the loan is not a secured debt on your home, it is considered a personal loan and the interest you pay isn't deductible.

A deduction for mortgage interest is limited to two residences, your main home and a second residence.

To deduct interest on a home mortgage you must be personally obligated for it's repayment.

So, if you're a home-owner, be sure to see, if you qualify for the mortgage-interest tax break this year.

You can use the free tax calculator provided by TurboTax Online to figure out your Mortgage Interest Deduction. Prepare and file your taxes with Turbo Tax Online and get all the deductions and credits you deserve!