Income tax rebate on housing loan.

Question

May 2, 2007, 04:58 AM

YogendrahVir

New Member

Join Date: May 2007

Posts: 1

Income tax rebate on housing loan.

Hi,

I would like to know what is the income tax rebate that I can get On the housing loan.
I have recently bought a property and took housing loan for the same. the property is in the form of Two 1 Bhk Flats adjacent to each other which I wish to join together later.
So on what princiapal and interest I would be eligible for rebate under the income tax clause. Can I claim rebate for both of my houses or is it only for one, If its only for one then is there any benefit that I can avail on the second flat.

Regards,

Yogendrah Vir

Answers

May 2, 2007, 05:28 AM	#2

AtlantaTaxExpert

Tax Expert

Join Date: Feb 2005

Location: Atlanta, Georgia

Posts: 9,706

Under the U.S. income tax system, you do not get a "rebate" on your housing loan. You deduct the mortgage loan interest and real estate taxes on the properties in question as an itemized deduction.

Yes, you CAN deduct the interest and taxes on BOTH flats as itemized deductions. If you rent one of the flats, then the mortgage interest and real estate taxes are switched from itemized deductions (Schedule A) to Schedule E, which is used to report your rental income and the other rental expenses.

How MUCH you save using these deductions depends on your tax bracket.

Answer this Question Ask about Taxes

« Previous Question | Next Question »

Question Tools	Search this Question
Show Printable Version Email this Page	Search this Question: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Sponsors

Similar Questions
Question	Asker	Topic	Answers	Last Post
Income tax benefit clarification for Housing loan	vineet_chattree	Taxes	2	Mar 12, 2008 10:29 AM
Deduction of Housing Loan	raj0570	Taxes	1	Apr 3, 2007 06:13 PM
Re: H4 tax rebate	Ashran	Taxes	1	Mar 2, 2007 02:36 PM
Income tax rebate on housing loan	samnaik_23	Taxes	2	Jan 11, 2007 08:33 PM
Calculation Income Tax for Housing loan	Prashant Lakkundi	Taxes	2	Jan 8, 2007 04:11 PM



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!