JulieR
Expert Alumni

Deductions & credits

YesYou may deduct the portion of your mortgage interest that covers the land on Schedule F. The remainder gets deducted on Schedule A.  A good method to determine how much interest to allocate to the farm is to apply the percentage your county tax assessment lists as the portion of your property value that is for the land to the total mortgage interest reported from your lender. You can make an adjustment to the percentage for the land you home actually occupies, if necessary.

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