Sentences with phrase «deduction on certain loans»

However, the IRS also specifies when you can't make a tax deduction on certain loans, which is why you never hear about deducting interest on things like using a credit card for personal use, or your car loan payments — neither one qualifies for a deduction.

Not exact matches

These include deductions for contributions to individual retirement accounts, alimony payments, certain moving expenses, and interest on student loans.

If you're far enough along on your home loan such that your mortgage - interest tax deduction isn't worth much, and you plan to invest the money through a tax - qualified account such as a Roth IRA rather than a taxable account, that may skew the numbers in favor of investing over paying down the mortgage — assuming you're fairly certain about your market returns.

This way, you receive a deduction for your RRSP contribution, and the interest on the loan borrowed for investment purposes should also be tax deductible provided certain conditions are met (see topic 150).

The IRS allows certain taxpayers to take a tax deduction for the interest expense on some loans using Form 4952.

These include deductions for contributions to individual retirement accounts, alimony payments, certain moving expenses, and interest on student loans.

The adjustments — sometimes called above - the - line deductions because you can claim them whether or not you itemize deductions — include (among other things) deductible contributions to Individual Retirement Accounts (IRAs), SIMPLE and Keogh plans, contributions to Health Savings Accounts (HSAs), job - related moving expenses, any penalty paid on early withdrawal of savings, the deduction for 50 percent of the self - employment tax paid by self - employed taxpayers, alimony payments, up to $ 2,500 of interest on higher education loans and certain qualifying college costs.

Federal tax rules may limit who can take certain deductions based on income, or restrict deductions based on mortgage loan limits.