Mortgage Interest Deduction

Definition of "Mortgage interest deduction"

Alex Hohn real estate agent

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Alex Hohnelite badge icon

Palmer House Properties

Tax deduction for interest paid or accrued within the taxable year with respect to mortgage indebtedness. Interest is deductible on mortgages secured by principal and second homes. A taxpayer may not write off interest on any part of the mortgage that exceeds the original purchase price plus improvements of property, unless the taxpayer uses the money for medical or educational purposes.

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