What MORTGAGE INTEREST CREDIT means: Qualified taxpayers who receive a mortgage credit certificate from a state or local government in connection with a new mortgage for the purchase of their main may claim a credit for a percentage of their home mortgage interest. The percentage is set by the government and ranges from 10 to 50 percent. If the percentage exceeds 20 percent, the maximum credit is $2,000 per year. The itemized deduction for home mortgage interest must be reduced by the amount of the credit. Unused credits can be carried forward for up to 3 years. The credit is computed on Form 8396. If purchase a home using a mortgage credit certificate and you sell the home, you may have to pay back some of the credit.
- Definition Modified Accelerated Cost Recovery System (MACRS):
- Dictionary depreciation system used for most property placed in service after December 31, 1986. But ACRS (see Accelerated Cost Recovery System) must be used for certain property acquired from a related party mortgage interest credit definition.
- Definition Medicare Tips:
- Dictionary Tips reported to an employer by a tipped employee. Such tips are subject to Medicare withholding mortgage interest credit explain.
- Definition Medical Expenses:
- Dictionary expenses of an individual, spouse, and dependents are allowed as an itemized deduction to the extent that such amounts (less reimbursements) exceed 7.5 percent of adjusted gross income mortgage interest credit what is.
- Definition Modified AGI (MAGI):
- Dictionary gross income (MAGI) is a figure used to figure the limit on an exclusion or deduction allowed in computing adjusted gross income. Depending on the item for which MAGI is being computed, certain items mortgage interest credit meaning.
How works Mortgage Interest Credit meaning in Tax definitions M .
