I received an annual tax and interest statement from the mortgage company but not from the company that handles my retirement account. I was able to figure the interest, though, from the down payment loan.
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Unfortunately, you cannot deduct the interest on the loan from your retirement plan, as the plan funds themselves, not the home, are pledged as the collateral for that loan.
The following guidance on this matter is provided from IRS Pub. 936 Home Mortgage Interest Deduction:
"You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that:
In other words, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. If you cannot pay the debt, your home can then serve as payment to the lender to satisfy (pay) the debt."
Unfortunately, you cannot deduct the interest on the loan from your retirement plan, as the plan funds themselves, not the home, are pledged as the collateral for that loan.
The following guidance on this matter is provided from IRS Pub. 936 Home Mortgage Interest Deduction:
"You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that:
In other words, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. If you cannot pay the debt, your home can then serve as payment to the lender to satisfy (pay) the debt."
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