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Nothing that is included in the above information would make the interest payments on the family loan deductible on your 1040 income tax return.

To be deductible on your 1040 federal income tax return it would have to be a legal qualifying mortgage.

Or legal collectible loan for a business or investment purposes, etc.

Both you and the lender must intend that the loan be repaid. In addition, there must be a true debtor-creditor relationship between you and the lender.

*The mortgage must be a secured debt on a qualified home in which you have an ownership interest. (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. The term "qualified home" means your main home or second home. For details, see Publication 936.)

For more information go to the IRS gov web site and use the search box for publication 936

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Can I deduct student loan interest in 2018 on my taxes?

Yes, you can deduct student loan interest on your taxes in 2018, up to a certain limit.


Is the interest deductible when you use a home equity loan to pay off a second mortgage?

The interest on the second mortgage is deductible but not the home equity loan. If you could deduct the interest on the equity loan also, then you would be double dipping and the IRS doesn't like that. In every situation, one party can and the other party can deduct the interest. Someone has to pay tax on the money transfer.


Can you deduct student loan interest for the year 2018?

Yes, you can deduct student loan interest for the year 2018 if you meet certain criteria, such as having a modified adjusted gross income below a certain limit and using the loan for qualified education expenses.


Can you deduct interest on a home loan taken out from a relative not from a bank?

Here's what I found so far: To deduct interest payments paid as itemized home mortgage interest, the loan obligation must be secured by a recorded mortgage or deed of trust against the home. This can be doneby their signing and recording a mortgage or deed of trust to secure the promissory note.


What are the tax benefits associated with home loan interest?

The tax benefits associated with home loan interest include the ability to deduct the interest paid on your mortgage from your taxable income, potentially reducing the amount of taxes you owe. This deduction can result in lower overall tax liability for homeowners.

Related Questions

Can I deduct student loan interest in 2018 on my taxes?

Yes, you can deduct student loan interest on your taxes in 2018, up to a certain limit.


Can you deduct interest from a signature loan?

"Personal" interest is NOT deductible.


Can I deduct interest on a personal loan used for home improvements?

no


Is money that you loan to someone taxable?

A loan from a family member is considered taxable income. The borrower can deduct a certain amount of the interest paid. The lender will have to pay taxes on any interest earned.


What is better 3 percent loan where you cannot deduct interest for tax purposes or 5 percent loan where you can deduct interst from you income tax?

It simply depends on your own personal tax situation.


Is the interest deductible when you use a home equity loan to pay off a second mortgage?

The interest on the second mortgage is deductible but not the home equity loan. If you could deduct the interest on the equity loan also, then you would be double dipping and the IRS doesn't like that. In every situation, one party can and the other party can deduct the interest. Someone has to pay tax on the money transfer.


Can you deduct student loan interest for the year 2018?

Yes, you can deduct student loan interest for the year 2018 if you meet certain criteria, such as having a modified adjusted gross income below a certain limit and using the loan for qualified education expenses.


Can you deduct interest on a home loan taken out from a relative not from a bank?

Here's what I found so far: To deduct interest payments paid as itemized home mortgage interest, the loan obligation must be secured by a recorded mortgage or deed of trust against the home. This can be doneby their signing and recording a mortgage or deed of trust to secure the promissory note.


If you cosign a student loan can you deduct the interest if the first party does not?

http://www.ird.gov.hk/eng/faq/ctr.htm#item5 I doubt it.


What are the tax benefits associated with home loan interest?

The tax benefits associated with home loan interest include the ability to deduct the interest paid on your mortgage from your taxable income, potentially reducing the amount of taxes you owe. This deduction can result in lower overall tax liability for homeowners.


How can an interest on personal or credit card loan spent to purchase a home be made tax deductible?

One of the conditions for deducting mortgage loan interest is that the loan must be secure by a properly recorded lien on the property. If the person or company giving you the loan is not getting a lien on your property, you cannot deduct the interest. There are also several other conditions. Take out a home equity line of credit instead.


Can car loan interest be claimed when filing personal taxes?

No, car loan interest cannot be claimed when filing personal income taxes. One can, however, deduct some costs of upkeep (or mileage) if the individual can demonstrate that the car was used for business and that they were not reimbursed for such usage.