Protecting Your Interest Deduction
Many individuals have seen their portfolios rise significantly over the last few years, and as a result of such increase in wealth, many homeowners are paying cash for their homes and foregoing mortgages. As a result of these no mortgage purchases, homeowners are foregoing large interest tax deductions they could have received had they purchased their homes with a mortgage. Buyers who pay cash for their homes typically purchase more expensive homes, have larger mortgages and are generally in higher tax brackets so they would receive a greater benefit from the home mortgage interest deduction. Read more