Are mortgages tax deductible?

The interest on a mortgage is usually tax deductible. This is a significant motivator for many people when they are considering buying a home. The deduction can be taken on your primary residence as well as on a second home, such as a vacation home. In order to qualify, the mortgage must be secured by the home itself. This means that if you have a HELOC or Home Equity Line of Credit, you will not be able to deduct the interest on that loan because it is not secured by the property. The deduction is taken as an itemized deduction on Schedule A of your Form 1040. If you are in the 25% tax bracket, every 0 of interest you pay will save you in taxes. Mortgage interest is just one of the many deductions that you can take advantage of to lower your taxes. Be sure to consult with a tax professional to see what other deductions may be available to you.

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