Comments on: Secured Loan Got Us A Home Of Our Own!

By: Helen, EA in PA

Helen, EA in PA — Tue, 09 Mar 2010 11:26:59 +0000

No, no matter if they report it to you or not. The only interest deductible is that AFTER the loan has been secured by your home. Helen, EA in PA
References :

By: bostonianinmo

bostonianinmo — Tue, 09 Mar 2010 11:24:59 +0000

No, mortgage interest is only deductible if the loan is secured by the property. Any interest paid on a loan that is not secured by the property is not deductible. You don't "get a loan secured" you have to replace it with a new loan. Even if you agreed to a loan mod to the original loan, the interest paid before it was secured by the property would remain non-deductible.
References :

By: bobby d

bobby d — Tue, 09 Mar 2010 11:22:59 +0000

… yeah, what golfer said …

.. plus, even if you could deduct it as interest income, your parents would then have to claim the interest as income, so it’s like offsetting penalties.
References :

By: golferwhoworks

golferwhoworks — Tue, 09 Mar 2010 11:20:59 +0000

no not unless they give you a tax interest statement to be filed. They are not a bank. But part of your closing cost can be deducted I am a mortgage banker in TN & KY
References :

By: Elizabeth K

Elizabeth K — Tue, 09 Mar 2010 06:18:22 +0000

if i get home loan secured in this taxable year, can i deduct interest payments made before loan secured?
my parents helped my husband and i purchase a home this year. we have a loan agreement with them and have been making payments of principal and interest since june of this year. the loan is not secured on the home. the home mortgage interest deduction for federal personal income taxes requires that the loan be secured on the property. if i get the loan secured before the end of this taxable year, can i deduct all interest payment made this year even if they were made before the home was secured?