Mortgage Interest (Form 1098)

Deductible mortgage interest is shown on Form 1098 that you receive from your lender.

Interest is deductible on a loan(s), up to certain limits, if used to acquire, construct or improve your principal residence and/or a second residence. The tax deduction is taken on Schedule A as an itemized deduction. Your primary home or secondary home can be a house, condo, RV, boat, or camper as long as it has cooking, toilet, and sleeping facilities.

To deduct mortgage interest or home equity interest, the loan must be secured by your main home or second home.

If you own a rental home or investment home, you can deduct the mortgage interest for that home as part of the rental home expenses or as investment interest even if it is a third home or more.

Mortgage interest on a home construction loan is deductible from the time construction begins. If construction of your home takes longer than 24 months, then any mortgage interest after 24 months is no longer deductible until your home is completed.

If you are an unmarried co-owner of a residence, the limit applies to each taxpayer separately.

If you qualify for the Mortgage Interest Credit, you would also enter your mortgage interest here:
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