Taxing Matters

[jdsl1998]

Hi, all. Here's a tax question for you accountant-types. In January, we closed on our new home in TV and we took advantage of the subsidy assistance for the first 6 months. Now that I am preparing my taxes for 2009, can I take the full mortage interest deduction that is shown on the interest statement or just the net after subsidy? Thanks.

[l2ridehd]

Not sure what you mean by subsidy. If your talking about the tax credit, you would take all the interest you paid and then the tax credit is applied against your total tax liability. If someone else paid all or a portion of your mortgage then you can only take a deduction for what you actually paid in interest.

[Russ_Boston]

If your talking about the tax credit, you would take all the interest you paid and then the tax credit is applied against your total tax liability.

I agree. My son took the 8K for first time homeowner and he also was able to write off the mortgage interest. I use HR Block software (formally called TAX CUT) and those were the instructions.

[jdsl1998]

Thanks for your sage counsel. JDSL1998