Finance
A Pennsylvania homeowner can deduct mortgage interest on their federal taxes if they:
AOnly own the home for less than 5 years
BItemize deductions and the mortgage is on a qualified primary or second home up to $750,000 of acquisition debt✓ Correct
CRefinance the mortgage within the tax year
DUse the home exclusively for personal use without any home office
Explanation
Federal tax law allows homeowners to deduct mortgage interest on acquisition debt up to $750,000 (for loans originated after December 15, 2017) on a qualified primary or second home if they itemize deductions. This benefit is a significant financial incentive for homeownership.
Related Pennsylvania Finance Questions
- A Pennsylvania commercial real estate lender evaluates a loan primarily based on the property's:
- A Pennsylvania commercial real estate loan with a 1.25 DSCR means:
- A Pennsylvania ARM (adjustable-rate mortgage) with a 5/1 structure means:
- What is the 'debt-to-income ratio' (DTI) and why is it important to Pennsylvania mortgage applicants?
- What does loan 'amortization' mean in the context of a Pennsylvania residential mortgage?
- The FHA mortgage insurance premium (MIP) differs from PMI in that:
- What is a 'stated income' mortgage and why are they rare in post-2010 Pennsylvania lending?
- What is 'subordinate financing' and when is it used in Pennsylvania real estate transactions?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →