Question On Tax Deductability Of Interest (California)
Soooooo
Exactly what is deductable on
An interest only loan
Is it the entire payment?
A regular amortized loan ?
How can one delcare that deduction....
Itemizing on a standard 1040 or something else?
I hear alot of stuff said so I need to be sure
Sounds like you are an Ameriquest customer.
[addsig]
The interest component is deductable as a business expense. If you have an interest only loan, the entire amount is deductable. Real estate expenses are reported on Schedule E of form 1040 and there is a place to enter interest.
Is interest deductable if a non self employed person itemizes only or can he deduct the interest even if he claims the standard deduction? Is there a limit as to how much he can deduct
Thanks
Can find any info on this
Contact your states Mortgage broker liscencing board. Ask them your questions
If you are going by your payment amount before you were in default, this is where you maybe going wrong. Interest, penalties, and legal fees were added to you total amount due to reinstate the loan in good standing. These charges are usually spread out onto several payments, in an agreeement called forebearance.
This maybe the extras you are paying for each month.
Another possiblity could be increases in your home owners insurance, mortgage insurance (if you did not put enough of a down payment), or property taxes. These all are escrowed by your mortgage company to make sure they get paid. This covers their interest in your home if it were to burn down, or if the taxes were not paid to save it from the auction block.
In Pennsylvainia a home cannot be foreclosed until it is proven that the owner is not paying due to millitary service deployment, that may be a federal law.
I hope this helps.
I think the reason folks will advertise the rehabbed properties at FMV is that now the investor will not have to put any money into repairs. For folks who do not want to bother with any repairs - no matter how minor even at FMV it is a deal if they are in a good market.
In some areas homes at FMV can still be rented and generate positive cash flow or can sometimes get reappraised in a short time and have a higher FMV. I have seen that here in S FL