Everything You Need To Know About Mortgages

Is a principal reduction on my rental home mortgage tax deductible?

If I get a principal reduction on my rental home through my mortgage provider, do I have to pay taxes on the forgiven principal? I have a townhouse with about $330K in mortgages that’s only worth around $150K now.
Everyone is addressing “qualified principal residence indebtedness” when answering this question and saying that it doesn’t qualify for that. I understand that.

However, does this count as “qualified real property business indebtedness”? This is another line item on the same form that you use to claim “qualified principal residence indebtedness” and basically has the same effect of not counting the forgiven balance towards income.

I’m reading IRS Forms 982 and Publication 4681 and am still not sure if I qualify, although it seems like maybe?

Income tax.

But you aren’t going to get to keep the principal with investment property, so it is a rather mute question.

Mortgage Insurance Tax Deduction Gone. Choose Your Own Loan Term Arrives.

Lower Your Taxes – Big Time 2011-2012 4/E $10.76 Completely revised and updated—the must-have resource for saving thousands of dollars at tax time Taxes aren’t just a nuisance; they’re fast becoming the single biggest expense for the typical American household. Completely revised and expanded, Lower Your Taxes—Big Time! has everything taxpayers need to know about saving money on April 15—and every other day of the year. Sandy Botkin, a…

What Your CPA Isn’t Telling You: Life-changing Tax Strategies $11.69 This is a powerful story woven around one theme—TAX PLANNING CAN CHANGE YOUR LIFE Tackling the fundamental question asked by all taxpayers – How can I save on taxes? — attorney and CPA Mark J. Kohler empowers you to dismiss standard CPA viewpoints like your tax payment is what it is and you just make too much money. Simplified through the mastery of storytelling, Kohler invites you to immers…

Is Sex Tax-Deductible? : And Other Reminiscences of Fulfilling Fantasies $18.48 No Synopsis Available

Tags:   mortgage tax deductible · mortgage tax deductible calculator · mortgage tax deductible canada · mortgage tax deductible income · mortgage tax deductible interest calculator · mortgage tax deductible interest rate · mortgage tax deductible on second home · mortgage tax deductible plan · mortgage tax deductible refinance · mortgage tax deductible ukNo Comments