What You Can Deduct on Home Payments
When you buy a home, you generally put as large a down payment as you can afford on it and then make a mortgage payment every month for the balance. That can seem like a lot of money going out, but then you realize that there are benefits to this.
One benefit is the equity that you build in your home, an equity that you do not have when rent is going out each month. Then there is also the additional benefit of a tax deduction for the part of the mortgage that is your payment of interest. Also in the beginning of your mortgage life, most of your payments will be interest related and not contribute much to reducing the principal.
If you want to know more about the mortgage interest tax deduction that you are entitled to take, just go to the web site for the Credit Guide and find the page that will give you all the information on this particular benefit.