Can someone please summarize the instructions for lines 10-14? Here’s the website:
I summarized if, yet it is too long
A home. Ex. House, condo, cooperative, mobile home, boat, etc.
Has to include sleeping space, bathroom, or kitchen area.
Mortgage is any loan that is secured by the main home, or second home. It can include 1st and 2nd mortgage and home equity loans and refinance mortgages.
How to enter
Enter the mortgage interest and points recorded on form 1098.
If it shows any refund, don’t reduce your deduction.
If you paid more interest, see publication 936 to see if you can deduct your additional interest.
If you and one other person reliable for the mortgage and the interest is recorded on form 1098 for the other person, record your share of interest on line 11.
If you did not receive the form from the recepient, then use Line 11
If you bought a house from the recepient, you need their name, social security number, and address.
If not, you have to pay a $ 50 fine
This is all your points not recorded on form 1098
Points you paid are only deductable over the life of the loan.
You must deduct points you paid to refinance a mortgage over the life of the loan.
If you use the money to improve your home, you could possibly deduct the payments depending on what year it was paid.
Mortgage Insurance Premium
Qualified mortgage insurance provided by the department of veterans affairs the federal housing administration or the global housing service.
There is a limit on the amount you can deduct:
You cannot deduct money if your mortgage insurance premium is $ 109,000 or $ 54,500
If your insurance premium is more than $ 100,000 or $ 50,000 if married filing separately, your deduction is limited.
Investment interest is a tax on loans but only the loans that are used for mortgage.
You are required to fill out form 4952 unless if all three of these exceptions apply:
Your investment interest is not more than your investment income.
You don’t have any other deductible investment expenses.
You have no disallowed investment expense from the previous year.