Carins U asked:


I have significant mortgage interest paid in 2006 on my home and all of my income was subcontractor (1099) income.

In 2005, my tax preparer told me I couldn’t deduct the mortgage interest on 1099 income but now several people have told me that I can.

Which is it? Can I deduct the mortgage interest against my sub contractor income?

Thanks!

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Speedracer asked:


Home was purchased in June 2006. Just curious to know. Thanks in advance for any help.

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SCOTT R asked:


The IRS sets a minimum rate that can be charged for a home mortgage. That number has a special name which escapes me. Anybody know?

Thanks

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Meryl610 asked:


My parents get about $20,000 from soc security and medicare and they have no other income or securities. They had a savings account at the beginning to the year and used $6,000 of that for some home repair,and the rest for their cemetery plots, leaving only $1,000 left.

I deposited $30,000 throughout the year into their checking acct for them to pay all their medical, food, utilities, clothes, auto, etc. They own their home and pay mortgage, taxes, insurance, homeowners fees, and home repairs with this money, as well.

Can I claim them as dependents and add their medical expenses to my deductions? Does the fact that they own their home affect this?

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