Interest Tracing & Home Mortgage Interest - 4 Hours CPE

Course Overview

Determining whether interest expense is deductible—and how much can be deducted—requires an understanding of both interest tracing rules and home mortgage interest limitations. This course examines how debt proceeds are allocated and how different borrowing arrangements affect the tax treatment of interest. Topics include acquisition debt, refinancing, home construction, rental conversions, second homes, and beneficial ownership. The course also addresses reverse mortgages, points, education interest, and other special interest deduction situations to help tax professionals evaluate the proper treatment of interest expenses.

What You'll Learn

After completing this course, participants will be able to:

• Identify the interest tracing rules used to determine the proper tax treatment and deductibility of interest expense.

• Assess home mortgage interest limitations involving acquisition debt, refinancing, home construction, and other debt arrangements.

• Differentiate the tax treatment of interest involving primary residences, second homes, rental conversions, and beneficial ownership situations.

• Recognize the tax considerations associated with reverse mortgages, points, education interest, and other special interest situations.

Who This Course Is For

Tax professionals who prepare returns or advise clients on interest expense deductions, mortgage financing, refinancing, and other borrowing arrangements.

Looking for additional tax education? Browse our self-study CPE courses covering a variety of federal tax topics.