# Excess Mortgage Interest

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How to calculate home mortgage interest when loan exceeds \$1million. I have a client whose home mortgage is in excess of \$1,000,000. Therefore, the amount that is not "qualifed home mortgage interest" becomes investment interest. I can’t find the form in either TurboTax or Intuit’s Pro Series that makes the calculation.

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Listen confusion our podcast mortgage important information about mortgage interest.

Multiply your mortgage interest rate by 1 minus your tax rate. If the result is higher than what you typically earn with a conservative investment, pay down your home loan. Otherwise, the savings option is better. Example: Say your interest rate is 4% and your tax rate is 25%: 1 minus 0.25 equals 0.75. Multiply 0.75 times 4% and the result is 3%.

Extra payment mortgage spreadsheet. This is one of the original mortgage spreadsheets created prior to most of the mortgage calculators listed above. The idea is to compare making extra payments to a basic interest-bearing savings account or investment.

The total interest you paid for the year was \$60,000. You would only be able to claim a mortgage interest deduction for \$50,000 of that, the interest on the first \$1 million of home acquisition debt. The remaining \$10,000 is the result of loan value that exceeds the \$1 million limit so you can’t claim it.

Allocated Interest – This amount is calculated on the Excess Mortgage – Worksheet to Figure Qualified Loan Limit and Deductible Home Mortgage Interest for 2017 (IRS Publication 936). The program will complete this worksheet for each loan entered in Screen 25, Itemized Deductions, in the Excess Mortgage Interest section.

A home mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on the loan which is secured by their principal residence (or, sometimes, a second home).Most developed countries do not allow a deduction for interest on personal loans, so countries that allow a home mortgage interest deduction have created an exception to.

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You can deduct your mortgage interest on IRS Form 8829 Expenses for. mortgage payment) when you depreciate your home on Form 8829. my tax preparer – had entered it on line 16b “Excess mortgage Interest” I told.