How to Deduct Home Mortgage Loan Interest

Video Transcript

"Ah here it is. Have you ever wondered how to deduct home mortgage interest? Well my name is Danielle, I'm a CPA with Accell and I'm here to talk to you about how to deduct your home mortgage interest. It's really rather simple. It's long as you get sent this form, ten ninety eight, you've got the information that you need to be able to deduct your interest. On the line up here, the first line, that's going to tell you how much money you can deduct for interest that you paid in during the year. In this example this individual paid six thousand two hundred forty eight dollars and twenty one cents. That's great. That means if this person is able to itemize their tax return they can deduct that much interest. It's really that simple and all you have to do is put it on your schedule A of form ten forty. So there shouldn't be a lot of mystery around that. Another thing that you might want to note on your form ten ninety eight, is there's this other line number five, real estate taxes paid. In this instance thirty five hundred dollars and sixty cents. Well what does that mean. That means most people escrow their taxes in with their mortgage during the year, and you have the benefit of having one form that shows you how much you paid in real estate taxes in a mortgage interest. So I think you've got every thing you need in order to deduct your home mortgage interest. My name is Danielle with Accell and I hope I've helped you today. Have a good one."