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.
TAFN
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