In my opinion the area of the Tax Code where proper documentation and strict adherence to the law is perhaps the most overlooked (or actually ignored) is the deduction for mortgage interest – both on Schedule A and Form 6251.
Taxpayers are required to keep separate track of acquisition debt and home equity debt, to make sure that the deduction on Schedule A does not include interest on debt principal that exceed the statutory maximums, and to determine what interest deduction to add back on Form 6251 when calculating Alternative Minimum Taxable Income. However, I firmly believe that 99.5% of taxpayers do not do this. I do not know of any taxpayer who does. And I expect that many tax preparers do not do this for their homeowner clients.
As we know, a deduction for mortgage interest is only allowed on acquisition debt of up to $1 Million and on home equity debt of up to $100,000. And home equity debt is not deductible in calculating the dreaded AMT. The acquisition debt limit may not be an issue, but how many clients do you know who keep track of the extent of home equity debt – or even know that there is a need to so do?
I have created a MORTGAGE INTEREST GUIDE. In it I explain the various types of mortgage debt and the deduction limitations, and go into detail on how refinancing an acquisition debt mortgage can result in home equity debt. I include in this guide two worksheets – one for Acquisition Debt Activity and one for Home Equity Debt activity – and provide a detailed example of how to use the worksheets.
I am offering limited “reprint rights” for my Mortgage Interest Guide to my fellow tax professionals to purchase and use for just such purposes. The reprint rights are for use in your own practice only – for free distribution to current or potential clients. You cannot use the reprint rights to sell the guide to the public.
Give this guide to clients who have just purchased their first or a new home - so they can learn how to keep track of the two different kinds of mortgage debt, and make your job easier at tax time. Or you can offer the guide, with an included promotional message, as a free gift to new home owners as part of your marketing program
Here is what one satisfied customer said about this guide in the newsletter of the PA chapter of NATP –
"I ordered the guide 'the limited reprint rights' version for $11.95. I must say that it was the best $11.95 I have ever spent. There is a wealth of information in that guide, some I knew and some I didn’t."
The normal cost of the limited license and right to reprint the Mortgage Interest Guide is only $14.95, with a 25% discount for members of the National Association of Tax Professionals. But for all orders of reprint rights postmarked during the month of August the price is only $9.95! The NATP discount does not apply to this special price.
The guide will be sent to you as a word document email attachment. The signed reprint rights license will sent via postal mail.
You can order a pdf review copy of this report to for only $1.00, which can be deducted from the $9.95 if you subsequently order reprint rights.
To order your reprint rights to this report send your email address and a check or money order PAYABLE TO TAXES AND ACCOUNTING INC (very important) to –
TAXES AND ACCOUNTING, INC
MORTGAGE INTEREST GUIDE SPECIAL OFFER
POST OFFICE BOX A’
HAWLEY PA 18428.