Home mortgage interest deduction

In this article we look at the conditions which should be met for a person to deduct mortgage interest on his home.

These conditions are -

1. The person should file Form 1040 & on this form in Schedule A, itemize the deductions.
2. He should be legally liable for the mortgage.
3. The mortgage loan needs to be a secured debt which is on a qualified home.

In this context a qualified home means borrower's main or second home and secured debt means a debt in which a person signs an instrument that:

• Makes his ownership in the home security for repayment of that debt.
• Provides that home would satisfy the debt in case of defaults.
• Is recorded under state laws.