Question: How much is
deductible? Answer: Only the interest payments on the
first $20,000 of the high-LTV loan, the part that doesn't
exceed your home's value. Interest on the second $20,000
of the loan would NOT be tax deductible.
High-LTV loans have grown
from practically zero to $12 billion to $15 billion a
year, according to industry estimates. The IRS is
modifying that familiar form 1098 your lender sends you
every year. The new form would have a check-off for the
lender to indicate if they believe the borrower has a
high-LTV loan. The IRS also gets a copy of your Form
1098.
For information, go to
https://www.ahahome.com, the Web site for American
Homeowners Association.
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