Some of the new tax laws still allow for deductions on some of the interest you pay each month for your debts. So it is important to manage your debt wisely. Here are some tips for you as to which debt interest can benefit you when it comes to taxes.
Home-Mortgage Interest
You may deduct interest of up to $1 million worth of mortgages used to acquire or improve your main personal residence or one additional home. However, any mortgage interest on a third home is non-deductible. Also if you earn high income there are restrictions to mortgage-interest deductions and there could be a reduction of deduction allowed. For example for 2009 if your adjusted gross income is more than $166,800 you may have to reduce your mortgage interest deduction by about 25%. Continue reading ‘Debt Can Help You With Your Income Tax’ »