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No, it gets deducted from your AGI that is used to calculate tax. So you don’t pay tax on that 25k in your example
A1: Not true. You can deduct interest for mortgages up to 750k. If your mortgage is more than 750k, you cannot deduct interest. 10k deduction is for property, sales and state/local income tax combined.
PwC you can deduct interest up to 750K. It’s not that you can’t deduct anything. So if mortgage is 1mill, only the interest on 250k is not deductible
You don't get it back in full, you get to deduct it from your income to lower your taxable income.
That's not how deductibles work... U simply get taxed less, and I believe the max is 10k now
Got it, that latter part I was unsure and thx for the info
Pwc right again. Don’t try to argue with the accounting firm, Accenture. 😉