What’s the Mortgage Deduction?
Perhaps one of the best income tax laws we have in the United States that our neighbors in Canada envy. I would know - my best friend lives in Canada and I’ve heard her family curse the fact that they don’t get any benefits for owning a home when it comes to income taxes.
Basically, if you itemize your deductions, mortgage interest counts - especially in California - as a major deduction on Schedule A. You also can deduct real estate taxes, and sometimes, points you have paid on the purchase of a primary residence. Consult your tax professional for the details or read the IRS booklet here.
With most people, the home mortgage deduction is enough to beat the standard deduction just by itself, which results in a higher refund. If you can keep more of your money and use it to fund your own home, why wouldn’t you?
