Publication 936 - Home Mortgage Interest Deduction - Department Of Treasury

Internet. You can access the IRS web-

use any of the proceeds of any mortgage in-

How To Get Tax Help

cluded on line 9 of the worksheet for business,

site at

24 hours a day, 7

investment, or other deductible activities, then

days a week to:

all the interest on line 13 is personal interest.

You can get help with unresolved tax issues,

Personal interest is not deductible.

order free publications and forms, ask tax ques-

•

E-file your return. Find out about commer-

If you did use all or part of any mortgage

tions, and get information from the IRS in sev-

cial tax preparation and e-file services

proceeds for business, investment, or other de-

eral ways. By selecting the method that is best

available free to eligible taxpayers.

ductible activities, the part of the interest on line

for you, you will have quick and easy access to

13 that is allocable to those activities can be

•

tax help.

Check the status of your 2008 refund. Go

deducted as business, investment, or other de-

and click on Where’s My

ductible expense, subject to any limits that ap-

Refund. Wait at least 72 hours after the

Contacting your Taxpayer Advocate. The

ply. Table 2 shows where to deduct that interest.

IRS acknowledges receipt of your e-filed

Taxpayer Advocate Service (TAS) is an inde-

See Allocation of Interest in chapter 4 of Publica-

pendent organization within the IRS whose em-

return, or 3 to 4 weeks after mailing a

tion 535 for an explanation of how to determine

ployees assist taxpayers who are experiencing

paper return. If you filed Form 8379 with

the use of loan proceeds.

economic harm, who are seeking help in resolv-

your return, wait 14 weeks (11 weeks if

The following two rules describe how to allo-

ing tax problems that have not been resolved

you filed electronically). Have your 2008

cate the interest on line 13 to a business or

through normal channels, or who believe that an

tax return available so you can provide

investment activity.

IRS system or procedure is not working as it

your social security number, your filing

should.

•

If you used all of the proceeds of the mort-

status, and the exact whole dollar amount

gages on line 9 for one activity, then all

You can contact the TAS by calling the TAS

of your refund.

the interest on line 13 is allocated to that

toll-free case intake line at 1-877-777-4778 or

•

Download forms, instructions, and publica-

activity. In this case, deduct the interest on

TTY/TDD 1-800-829-4059 to see if you are eligi-

tions.

the form or schedule to which it applies.

ble for assistance. You can also call or write your

•

local taxpayer advocate, whose phone number

Order IRS products online.

•

If you used the proceeds of the mortgages

and address are listed in your local telephone

•

on line 9 for more than one activity, then

Research your tax questions online.

directory and in Publication 1546, Taxpayer Ad-

you can allocate the interest on line 13

•

vocate Service — Your Voice at the IRS. You

Search publications online by topic or

among the activities in any manner you

can file Form 911, Request for Taxpayer Advo-

keyword.

select (up to the total amount of interest

cate Service Assistance (And Application for

otherwise allocable to each activity, ex-

•

View Internal Revenue Bulletins (IRBs)

Taxpayer Assistance Order), or ask an IRS em-

plained next).

published in the last few years.

ployee to complete it on your behalf. For more

information, go to /advocate.

•

Figure your withholding allowances using

You figure the total amount of interest other-

the withholding calculator online at

Low-Income Taxpayer Clinics (LITCs).

wise allocable to each activity by multiplying the

/individuals.

amount on line 10 by the following fraction.

LITCs are independent organizations that pro-

vide low-income taxpayers with representation

•

Amount on line 9

Determine if Form 6251 must be filed by

in federal tax controversies with the IRS for free

allocated to that activity

using our Alternative Minimum Tax (AMT)

or for a nominal charge. The clinics also provide

Assistant.

Total amount on line 9

tax education and outreach for taxpayers who

•

speak English as a second language. Publica-

tion 4134, Low Income Taxpayer Clinic List,

news by email.

Example. Don had two mortgages (A and

provides information on clinics in your area. It is

•

B) on his main home during the entire year.

Get information on starting and operating

available at

or your local IRS office.

Mortgage A had an average balance of $90,000,

a small business.

and mortgage B had an average balance of

Free tax services. To find out what services

$110,000.

are available, get Publication 910, IRS Guide to

Don determines that the proceeds of mort-

Phone. Many services are available by

Free Tax Services. It contains lists of free tax

gage A are allocable to personal expenses for

phone.

information sources, including publications,

the entire year. The proceeds of mortgage B are

services, and free tax education and assistance

allocable to his business for the entire year. Don

programs. It also has an index of over 100

paid $14,000 of interest on mortgage A and

TeleTax topics (recorded tax information) you

•

$16,000 of interest on mortgage B. He figures

Ordering forms, instructions, and publica-

can listen to on your telephone.

the amount of home mortgage interest he can

tions. Call 1-800-829-3676 to order cur-

Accessible versions of IRS published prod-

deduct by using Table 1. Since both mortgages

rent-year forms, instructions, and

ucts are available on request in a variety of

are home equity debt, Don determines that

publications, and prior-year forms and in-

alternative formats for people with disabilities.

$15,000 of the interest can be deducted as

structions. You should receive your order

home mortgage interest.

within 10 days.

Free help with your return. Free help in pre-

The interest Don can allocate to his business

•

Asking tax questions. Call the IRS with

paring your return is available nationwide from

is the smaller of:

IRS-trained volunteers. The Volunteer Income

your tax questions at 1-800-829-1040.

Tax Assistance (VITA) program is designed to

1. The amount on Table 1, line 13 of the

•

Solving problems. You can get

help low-income taxpayers and the Tax Coun-

worksheet ($15,000), or

face-to-face help solving tax problems

seling for the Elderly (TCE) program is designed

2. The total amount of interest allocable to

every business day in IRS Taxpayer As-

to assist taxpayers age 60 and older with their

the business ($16,500), figured by multi-

sistance Centers. An employee can ex-

tax returns. Many VITA sites offer free electronic

plying the amount on line 10 (the $30,000

plain IRS letters, request adjustments to

filing and all volunteers will let you know about

total interest paid) by the following fraction.

your account, or help you set up a pay-

credits and deductions you may be entitled to

ment plan. Call your local Taxpayer Assis-

claim. To find the nearest VITA or TCE site, call

$110,000 (the average balance

tance Center for an appointment. To find

1-800-829-1040.

of the mortgage allocated

the number, go to

to the business)

As part of the TCE program, AARP offers the

/localcontacts

or look in the

Tax-Aide counseling program. To find the near-

$200,000 (the total average

phone book under United States Govern-

est AARP Tax-Aide site, call 1-888-227-7669 or

balance of all mortgages)

ment, Internal Revenue Service.

visit AARP’s website at

•

TTY/TDD equipment. If you have access

Because $15,000 is the smaller of items (1)

to TTY/TDD equipment, call

and (2), that is the amount of interest Don can

For more information on these programs, go

1-800-829-4059 to ask tax questions or to

allocate to his business. He deducts this amount

and enter keyword “VITA” in the

on his Schedule C (Form 1040).

upper right-hand corner.

order forms and publications.

Publication 936 (2008)

Page 13

Publication 936 - Home Mortgage Interest Deduction - Department Of Treasury - 2008 Page 13

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