Interest Deduction

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Dictionary Says

Definition of 'Interest Deduction'

A deduction for taxpayers who pay certain types of interest. Interest deductions reduce the amount of income subject to tax. The two main types of interest deductions are for home mortgage and home equity loan interest, and margin account interest. These deductions are allowed primarily to encourage home ownership and investment activity. Other interest deductions can come from the interest paid on student loans.
Investopedia Says

Investopedia explains 'Interest Deduction'

Interest deductions face some limitations. Taxpayers must be able to itemize in order to claim either of the deductions listed above, and margin account interest and other investment-related expenses are only deductible for amounts in excess of 2% of adjusted gross income. Additionally, margin loan interest is only tax-deductible if the loan is used to purchase taxable investments, and the deduction is limited to net investment income. However, once these conditions are met, it is possible to reduce or even eliminate one's taxable income if a sufficient amount of interest has been paid.
Search results for

'Interest Deduction'

  • Calculating The Mortgage Interest Tax Deduction

    http://www.investopedia.com/articles/mortgages-real-estate/11/calculate-the-mortgage-interest-math.asp
    The amount of money you save by paying your mortgage off quickly will far
    exceed any benefit from the mortgage interest tax deduction. ...

  • Tax Deductions On Mortgage Interest

    http://www.investopedia.com/articles/pf/06/MortIntTaxDeduct.asp
    ... However, as of 2011, there is no specific plan to abolish the home-mortgage interest
    deduction in the near future unless the flat tax is enacted. ...

  • The Most Controversial Tax Deductions Slideshow | Investopedia

    http://www.investopedia.com/slide-show/the-most-controversial-tax-deductions/mortgage-interest-deduction.aspx
    ... The Mortgage Interest Deduction. If asked to justify the mortgage interest deduction,
    most people would tell you that it encourages homeownership. ...

  • 9 Things To Know Before You Refinance Your Mortgage - Investopedia ...

    http://financialedge.investopedia.com/financial-edge/1010/9-Things-To-Know-Before-You-Refinance-Your-Mortgage.aspx
    ... Taxes Many consumers rely on their mortgage interest deduction to reduce
    their federal income tax bill. If you refinance and begin ...

  • Subprime Lending: Helping Hand Or Underhanded?

    http://www.investopedia.com/articles/basics/07/subprime_basics.asp
    ... Finally, the Tax Reform Act of 1986 eliminated the interest deduction for
    consumer loans, but kept the mortgage interest deduction. ...

  • Happily Married? File Taxes Separately!

    http://www.investopedia.com/articles/tax/08/file-seperately.asp
    ... who file jointly, such as: Earned income credit; Child tax credit; Child
    and dependent care credit; Student loan interest deduction; ...

  • The Most Controversial Tax Deductions Slideshow | Investopedia

    http://www.investopedia.com/slide-show/the-most-controversial-tax-deductions
    ... The Mortgage Interest Deduction. If asked to justify the mortgage interest deduction,
    most people would tell you that it encourages homeownership. ...

  • The Most Controversial Tax Deductions

    http://www.investopedia.com/articles/tax/11/the-most-controversial-tax-deductions.asp
    ... To learn more, see Tax Tips: Filing To Your Advantage.) TUTORIAL: Personal Income
    Tax Guide The Mortgage Interest Deduction If asked to justify the mortgage ...

  • The Most Controversial Tax Deductions Slideshow | Investopedia

    http://www.investopedia.com/slide-show/the-most-controversial-tax-deductions/industry-specific-tax-breaks.aspx
    ... The Mortgage Interest Deduction. If asked to justify the mortgage interest deduction,
    most people would tell you that it encourages homeownership. ...

  • The Most Controversial Tax Deductions Slideshow | Investopedia

    http://www.investopedia.com/slide-show/the-most-controversial-tax-deductions/investment-specific-tax-breaks.aspx
    ... The Mortgage Interest Deduction. If asked to justify the mortgage interest deduction,
    most people would tell you that it encourages homeownership. ...

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