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Mortgage interest deduction after divorce?
At my divorce I took out a new mortgage in my name only that included a payout to my ex for their share of equity in the house so I could take solo ownership. That payout was used to buyout the home so I could own it myself. For IRS purposes, can I still deduct my mortgage interest or is my mortgage officially tainted as a cashout refi?
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Mortgage interest deduction after divorce?
I think this is it IRS pub936 page10:
Acquiring an interest in a home because
of a divorce. If you incur debt to acquire the in
terest of a spouse or former spouse in a home
because of a divorce or legal separation, you
can treat that debt as home acquisition debt.
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Mortgage interest deduction after divorce?
Good research! Yes - You can deduct the total amount of mortgage interest you paid - it is considered home acquisition debt.
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