As you may know, the IRS limits the tax deduction (for the home-mortgage interest-deduction) to a maximum mortgage balance of $1.1 million.
But what happens when you…
- Have a home office for which you claim tax deductions?
AND
- Also have a mortgage in excess of $1.1 million?
The answer can be tricky, which is why it’s worth reading my brand new article titled Tax Tips: IRS Agent Denies Mortgage Interest on Home-Office Deduction.
Three ways our fact-filled article can help you:
- We’ll explain the tax-law’s income limit on the home-office deduction. The law allows home-office tax deductions only to the extent that gross income from the business exceeds non-business deductions (like mortgage interest). Neither the $1.1 million limit nor the gross-income limit actually limits the home-office mortgage-interest deduction. You’ll get the whole story when you read the full article.
- You’ll learn how the IRS can help you. (Yes, actually help you!) If you want to learn how to get the deduction, all you have to do is follow the IRS instructions on how to complete IRS Form 8829. It’s the form you file to claim the home-office deduction. We’ll provide details when you read the full article.
- We’ll tell you why there’s so little information on the subject. The information you need rests in the legislative history which is usually embedded in IRS regulations. In this case, however, the regulations deal only with the income limit. There’s nothing helpful published about the business part of the mortgage. We’ll tell you more when you read the full article.