Interest Tracing Rules Doom Couple in Tax Court

By | August 13th, 2011|Categories: Potpourri of Tax Topics|Tags: , , , |

If you own a home, you can deduct interest of up to $1 million on acquisition debt (usually your mortgage) and another $100,000 of home equity debt (a line of credit, for example).  Interest on amounts borrowed over $1.1 million is not deductible.  A couple from New Mexico tried to get around the $1.1 limit but [...]