O'Reilly logo

J.K. Lasser's Your Income Tax 2014: For Preparing Your 2013 Tax Return by J. K. Lasser

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 15

Itemized Deduction for Interest Expenses

On Schedule A of Form 1040, you may deduct three types of interest charges:

  • Home mortgage interest, which includes interest on qualifying home acquisition loans (15.2) and home equity loans (15.3)
  • Points (15.8)
  • Investment interest (15.10), but only up to the amount of net investment income (15.10).

Premiums paid in 2013 for qualified mortgage insurance on a principal or second residence are deductible within limits, but the deduction will not be allowed for years after 2013 unless Congress extends the law authorizing the deduction(15.6).

Interest on personal loans (such as loans to buy autos and other personal items and credit card finance charges) is not deductible with the exception of qualifying student loan interest; see Chapter 33.

Interest on loans for business purposes is fully deductible on Schedule C. Interest on loans related to rental property is fully deductible from rental income on Schedule E. Whether interest is a business, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required