Why can't I deduct my mortgage interest from my taxes?

Question

I bought my WI home in summer '05, I've heard others can deduct interest paid, but when we got the statement from our mortgage co. that box was empty. Is there any way around this?

Answer 1

Call your mortgage company and ask what's going on.  They are certainly not so generous as to have given you a zero interest mortgage.

Answer 2

You can Just 1099-OID what you paid.

Go to Yahoo group 1099-OID

Answer 3

Generally, you can take the deduction if you can itemize.  For most homeowners, mortgage interest is what makes it beneficial for them to itemize, especially in the early years of paying when almost their entire payment is going towards interest.  

Even if there is a reason your deduction is not allowed or is limited, your mortgage company should still report to you the interest that was paid.  The only reason I could think of for them not doing so is if you have a zero-interest loan on your home, and let's face it, that just doesn't happen.  Contact your mortgage company.  It's probably just a misprint.

Also, if you bought your home in 2005, you might be able to amend your returns for the prior years when you should have had mortgage interest.

Hope this helps!!

Answer 4

What do your monthly bills say? Do they break down your payment in terms of interest and principal? You certainly don't have a "principal-only" mortgage, so somewhere along the way you must have paid some interest during the year. You may have to do actual math calculations to figure it out -- but your mortgage company *should* be able to tell you. Give them a call.

Answer 5

Find out from the mortgage company how much interest you paid.

It is deductible only when  you itemize your deductions.

Read about itemized deduction: http://taxipay.blogspot.com/2008/05/item...