Wednesday, June 19, 2013

Under-water Mortagage

Q.  I have a motor home which I am selling, but owe more than the selling price. I will have to write a check for about $20,000 to pay off my loan.  I have been deducting the mortgage interest as a second home and the license fees. When I file my tax return, can I take the $20,000 as a deduction?

A.  Regrettably the $20,000 won't be deductible. This is true for any personal asset, including a residence, primary or not. Sometimes there just isn't any justice in our tax code. Sorry to be the bearer of bad news.

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