IRS Scrutinizes Mortgage Deductions
According to published reports, the Internal Revenue Service is more closely examining how taxpayers are reporting mortgage interest deductions.
The IRS is reportedly examining some returns with high deductions for mortgage interest and enforcing obscure rules that most home owners and many accountants could be unfamiliar with.
The calculations are very complex and rely on precise records that some home owners may have trouble producing
Experts advise home buyers who have borrowed more than $1 million in mortgages and home equity loans since 1987, the year deductibility limits were enacted, to consult a tax expert because the newest loan may not be tax deductible.
Source: Investment News Daily, Art Auerbach (08/25/2009)
