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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16559
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I own my house free and clear. I am buying my spouse out for

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I own my house free and clear. I am buying my spouse out for a divorce. Can I deduct a first mortgage interest?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

So, if I understand you correctly you own your house outright, but then are getting a mortgage to buy out your spouse in a divorce

MyVirtualCPA :

Yes, you will be able to deduct the interest on the new mortgage you are getting to buy your spouse out

MyVirtualCPA :

Mortgage interest is deductible on schedule A. YOu will have to itemize your deductions to get the benefit.

Customer:

I do itemize. Is there a limit on the amount of the mortgage to deduct the interest?

Customer:

Do you know if it is the same for California and well as Federal?

MyVirtualCPA :

You may only deduct interest on a mortgage up to 1,000,000

MyVirtualCPA :

And yes, it's the same for both federal and state

MyVirtualCPA :

Is there anything else that I can assist you with today?

MyVirtualCPA :

If there's nothing else that I can assist you with today, Please take a moment to rate my response "excellent" so that I may receive credit for assisting

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