Tagged: itemized deductions

Picture of a stone sign on the IRS building in Washington, D.C.

IRS Announces Annual Inflationary Adjustments for Tax Year 2016

The IRS today released the annual inflationary adjustments for more than 50 tax provisions that will be applicable for the 2016 tax year, including tax rate schedules, standard deduction adjustments, etc. Although many tax items have been adjusted for inflation, some items are remaining unchanged. Below is a summary of commonly used amounts that were part of the inflationary adjustment...

Picture Example of a Home that could secure a mortgage with deductible interest.

Is Interest Paid on a Re-Financed Mortgage Deductible?

Most taxpayers are aware of a tax deduction available for interest paid on most mortgages, but what happens when a taxpayer re-finances their mortgage? Is interest on the re-financed mortgage still deductible? The quick answer is yes: under I.R.C. Section 163, you may deduct the interest paid after refinancing a prior mortgage.[1] However, two important rules apply in this case....