Gray_ Gray _ Gray
Court Ruling Boosts Cap on Mortgage

Interest Deduction
 
The upper limit on interest deduction for home mortgages and home equity loans has effectively doubled, thanks to a ruling by the Ninth Circuit Court of Appeals. Previously, the IRS had held fast to an interpretation of the tax code that limited interest deduction on indebtedness of up to $1.1 million per residence (split into $1 million of acquisition costs and $100,000 of home equity indebtedness).
 
However, the appeals court ruled that the indebtedness limits should be applied on a per individual basis. Thus, under this interpretation, unmarried co-owners of a home are collectively limited to deducting interest paid on $2.2 million of indebtedness ($2 million of acquisition costs and $200,000 of home equity indebtedness).
 
Interest deduction can be a complicated area of taxation, and it is important that you receive guidance from a tax advisor experienced in this area. For questions about this and other tax issues, please contact Gray, Gray & Gray's Tax Department at (781) 407-0300.




We go beyond the numbers by delivering insight,
guidance and success to our clients.

 

Gray, Gray & Gray, LLP

781.407.0300

www.gggcpas.com



Click here to view our current job openings and the benefits of joining our team.


STAY CONNECTED
 
Like us on Facebook

Follow us on Twitter

View our profile on LinkedIn

Find us on Google+

View our videos on YouTube

Visit our blog





The information contained in this communication (including any attachments and/or re-directs to other online sources) is not intended or written to be used,  and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.
 
Copyright � 2016. All Rights Reserved.



Gray, Gray & Gray, LLP | 150 Royall Street | Suite 102 | Canton | MA | 02021