Borrowed for your home downpayment? You may miss out on the interest deduction!
Apr 30th, 2014
It is not uncommon for individuals to loan money to relatives to help them buy a home. In these situations, it is also not uncommon for a loan to be undocumented or documented by an unsecured note, with the unintended result that the home buyer can't claim a tax deduction for the interest paid to their helpful relative.
If it involves real estate, it's always a good idea to make sure everything is well documented, particularly when it involves close family, and you want a tax deduction.
Call us and we talk about whether this affects you.
Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve's exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.
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