Well, here we are again-Income Tax time...Just a reminder that one of the advantages of being a home owner is the opportunity to deduct your Mortgage Interest on your income taxes. While I am not a tax advisor, here are a few helpful tips to consider. In order to use this deduction, you must: •You must file Form 1040 and itemize deductions on Schedule A. •You must be legally liable for the loan - you cannot deduct interest if you make a payment on someone else's loan. •You must make the payment on a qualified home. Of course, because the deductions are regulated by the government, the rules are never quite as simple as they seem at first glance. There are two types of debt that generate tax-deductible interest. The first is debt that was taken out in order to buy, build or improve your home. This type of debt is known as "acquisition debt". The second type is debt that was taken out for other purposes and is known as "equity debt" because it draws on the equity of your property. Between the two, you can take out $1.1 million in debt and deduct the full amount of mortgage interest, provided that all mortgages fit into certain criteria (based on where you are filing as single or jointly basicly). Now, from here you need to consult with your tax advisor as it relates to what constitutes a "home", vs. a "second home" in order to deduct the interest. Don't forget about your rental properties, that interest is also deductable, however you must use a Schedule E. Again, consult your tax advisor, this is intended as food for thought and to point out another advantage of home ownership!