Mortgage Services Consulting
The Internal Revenue Code includes a number of complicated provisions related to financing homes and business ventures and the deductibility of the interest associated with real estate and business loans. These issues are rarely addressed by lending institutions whose primary focus is on the borrower’s ability to repay the loan.
Thus borrowers can end up with loans that are not properly structured to maximize tax benefits leading to lost or diminished tax deductions and the resulting unexpected increase in individual income tax, alternative minimum tax and self-employment tax which can have a significant financial impact on the borrower. Tax laws relating to the deductibility of interest are very complicated and depend upon the purpose of the loan funds, the term of the loan, the property securing the loan and the amount of the loan. Although it does not include all the tax limits, rules and effects, we have prepared an
overview article explaining some of the more prevalent issues.
In addition, a borrower’s individual tax situation plays a significant role in the determining the overall benefit derived from the allowable interest deductions. This includes the borrower’s tax bracket, whether the borrower currently itemizes deductions or uses the standard deduction and where on the return the interest is deducted.
By reviewing your borrowing plans with this office in advance tax traps can be identified and eliminated or mitigated with loans that are structured to provide the maximum tax benefits. That is why you strongly urged to contact this office first.
We will provide you a comprehensive mortgage consultation and help facilitate the loan process. We have a preferred vendor, Nationwide Mortgage Concepts, that will provide not only exceptional service and low rates, but also compensate this office for the consultation services so you don't have to.
