Mortgage Resource Guide
Taxes
154 articles10 sections
Homeowner tax benefits
- What Sort of Tax Benefits Are Available to Homeowners?Start here For 2026, homeowners can deduct mortgage interest, points, mortgage insurance, and property taxes if they itemize, and can exclude up to $250,000 of home sale gain.
- Can I Deduct My Mortgage Interest? Yes, if you itemize and the loan is secured by your main or second home and was used to buy, build, or substantially improve it, up to $750,000 of debt.
- How Do I Calculate the Mortgage Tax Deduction? Add up deductible interest from Form 1098, prorate it if your balance tops $750,000, then count only what your itemized total adds above the standard deduction.
- Is There a Limit to Mortgage Tax Deductions? Yes. You can deduct interest on up to $750,000 of mortgage debt, or $1 million for loans from before December 16, 2017. The 2025 law made the cap permanent.
- What Mortgage Costs Can I Deduct Besides Interest? Beyond interest, itemizers can deduct points, 2026 mortgage insurance premiums, property taxes, and prepayment penalties. Appraisal and title fees are not deductible.
Completing a 1031 exchange
- Do I Need an Intermediary for a 1031 Exchange? Yes, in practice, if you sell before you buy. A qualified intermediary holds your sale money so the gain stays deferred; your agent or a relative cannot serve.
- How Do I Complete a 1031 Exchange Application? There is no IRS application for a 1031 exchange. You sign a qualified intermediary agreement before closing, identify property in 45 days, and file Form 8824.
- How Long Do I Have to Complete a 1031 Exchange? You get 45 days from your sale to identify replacement property in writing and 180 days to close, cut short by your tax return due date unless you extend it.
- What Is a Reverse 1031 Exchange? A reverse 1031 exchange lets you buy first. A titleholder holds the new property while you identify what you will sell in 45 days and finish in 180 days.
1031 exchange rules and uses
- How Can I Use a 1031 Exchange to Stop Managing Property? Exchange your rental into a Delaware statutory trust or triple-net leased property, convert the new property to your home, hold until death, or sell and pay the tax.
- What Is a 1031 Exchange? A 1031 exchange lets you sell rental or business real estate and buy other U.S. real estate without paying tax on the gain now, if you meet the 45- and 180-day rules.
- What Is Boot in a 1031 Exchange and How Do I Avoid It? Boot is cash, debt relief, or other non-real-estate value you get in a 1031 exchange. Gain is taxed up to the boot amount, so reinvest all proceeds and replace debt.
- What Type of Property Can I Swap in a 1031 Exchange? You can swap any U.S. real estate held for rent, business, or investment for any other, such as land for an apartment building. Main homes and flips do not qualify.
Tax credits and recording taxes
- How Do I Calculate the Amount of My Mortgage Credit Certificate? Multiply the year's mortgage interest by your certificate's credit rate, cap it at $2,000 if the rate tops 20%, and limit it to your tax. Claim it on Form 8396.
- What Is a Mortgage Credit Certificate and Who Qualifies? A mortgage credit certificate turns 10% to 50% of your mortgage interest into a federal tax credit. It is for first-time buyers under local income and price limits.
- What Is the Mortgage Tax? The mortgage tax is a one-time state or local tax on your loan amount, paid when the mortgage is recorded at closing. Rates run from 0.10% to over 2% in NYC.
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