Comments on: Can you apply all of your mortgage interest as a tax deduction if you refinanced more than the original loan? http://www.refinance--blog.com/refinance/can-you-apply-all-of-your-mortgage-interest-as-a-tax-deduction-if-you-refinanced-more-than-the-original-loan Refinance Information and Deals Sun, 12 Feb 2012 03:48:19 +0000 http://wordpress.org/?v=2.7 hourly 1 By: TaxGuru http://www.refinance--blog.com/refinance/can-you-apply-all-of-your-mortgage-interest-as-a-tax-deduction-if-you-refinanced-more-than-the-original-loan/comment-page-1#comment-1462 TaxGuru Wed, 29 Jul 2009 01:50:58 +0000 http://refinance--blog.com/refinance/can-you-apply-all-of-your-mortgage-interest-as-a-tax-deduction-if-you-refinanced-more-than-the-original-loan/#comment-1462 <a href="">Karen</a> You can deduct interest on the refinanced loan, but only on an amount equal to the sum of (a) the balance of the original loan at the time of the refinancing, and (b) $100,000. In other words, if the cash out was not more than $100,000, you can deduct all the interest. There is another limitation, which is that interest is not deductible on any amount of the refinanced loan that exceeds the fair market value of the house. This is rarely a problem! Karen

You can deduct interest on the refinanced loan, but only on an amount equal to the sum of (a) the balance of the original loan at the time of the refinancing, and (b) $100,000. In other words, if the cash out was not more than $100,000, you can deduct all the interest.

There is another limitation, which is that interest is not deductible on any amount of the refinanced loan that exceeds the fair market value of the house. This is rarely a problem!

]]> By: Wayne Z http://www.refinance--blog.com/refinance/can-you-apply-all-of-your-mortgage-interest-as-a-tax-deduction-if-you-refinanced-more-than-the-original-loan/comment-page-1#comment-1461 Wayne Z Mon, 27 Jul 2009 14:01:47 +0000 http://refinance--blog.com/refinance/can-you-apply-all-of-your-mortgage-interest-as-a-tax-deduction-if-you-refinanced-more-than-the-original-loan/#comment-1461 <a href="">Javier</a> Yes, this little know portion of the tax law only kicks in under AMT. Javier

Yes, this little know portion of the tax law only kicks in under AMT.

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