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IRS.gov Website
Instructions for Schedule A (Form 1040)
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e867

Interest You Paid(p7)

For Use in Tax Year 2013
rule
Whether your interest expense is treated as investment interest, personal interest, or business interest depends on how and when you used the loan proceeds. See Pub. 535 for details.
In general, if you paid interest in 2013 that applies to any period after 2013, you can deduct only amounts that apply for 2013.
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Lines 10 and 11(p7)

For Use in Tax Year 2013
rule
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e888

Home Mortgage Interest(p7)

For Use in Tax Year 2013
rule
taxtip
If you are a homeowner who received assistance under a State Housing Finance Agency Hardest Hit Fund program or an Emergency Homeowners' Loan program, see Pub. 530 for the amount you can deduct on line 10 or 11.
A home mortgage is any loan that is secured by your main home or second home. It includes first and second mortgages, home equity loans, and refinanced mortgages.
A home can be a house, condominium, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleeping space, toilet, and cooking facilities.
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e908
Limit on home mortgage interest.(p7)
For Use in Tax Year 2013
rule
If you took out any mortgages after October 13, 1987, your deduction may be limited. Any additional amounts borrowed after October 13, 1987, on a line-of-credit mortgage you had on that date are treated as a mortgage taken out after October 13, 1987. If you refinanced a mortgage you had on October 13, 1987, treat the new mortgage as taken out on or before October 13, 1987. But if you refinanced for more than the balance of the old mortgage, treat the excess as a mortgage taken out after October 13, 1987.
See Pub. 936 to figure your deduction if either (1) or (2) next applies. If you had more than one home at the same time, the dollar amounts in (1) and (2) apply to the total mortgages on both homes.
  1. You took out any mortgages after October 13, 1987, and used the proceeds for purposes other than to buy, build, or improve your home, and all of these mortgages totaled over $100,000 at any time during 2013. The limit is $50,000 if married filing separately. An example of this type of mortgage is a home equity loan used to pay off credit card bills, buy a car, or pay tuition.
  2. You took out any mortgages after October 13, 1987, and used the proceeds to buy, build, or improve your home, and these mortgages plus any mortgages you took out on or before October 13, 1987, totaled over $1 million at any time during 2013. The limit is $500,000 if married filing separately.
caution
If the total amount of all mortgages is more than the fair market value of the home, additional limits apply. See Pub. 936.
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e944

Line 10(p7)

For Use in Tax Year 2013
rule
Enter on line 10 mortgage interest and points reported to you on Form 1098. If your Form 1098 shows any refund of overpaid interest, do not reduce your deduction by the refund. Instead, see the instructions for Form 1040, line 21. If you and at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mortgage, and the interest was reported on the other person's Form 1098, report your share of the interest on line 11 (as explained in the line 11 instructions).
If you paid more interest to the recipient than is shown on Form 1098, see Pub. 936 to find out if you can deduct the additional interest. If you can, attach a statement to your paper return explaining the difference and enter See attached to the right of line 10.
caution
If you are claiming the mortgage interest credit (for holders of qualified mortgage credit certificates issued by state or local governmental units or agencies), subtract the amount shown on Form 8396, line 3, from the total deductible interest you paid on your home mortgage. Enter the result on line 10.
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e976

Line 11(p8)

For Use in Tax Year 2013
rule
If you paid home mortgage insurance interest and it was not reported to you on Form 1098, report your deductible mortgage interest on line 11.
If you paid home mortgage insurance interest to the person from whom you bought the home, write that person's name, identifying number, and address on the dotted lines next to line 11. If the recipient of your home mortgage interest payment(s) is an individual, the identifying number is his or her social security number (SSN). Otherwise, it is the employer identification number. You must also let the recipient know your SSN. If you do not show the required information about the recipient or let the recipient know your SSN, you may have to pay a $50 penalty.
If you and at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mortgage, and the home mortgage interest paid was reported on the other person's Form 1098, attach a statement to your paper return listing the name and address of that person. To the right of line 11, enter See attached.
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Line 12(p8)

For Use in Tax Year 2013
rule
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Points Not Reported on Form 1098(p8)

For Use in Tax Year 2013
rule
Points are shown on your settlement statement. Points you paid only to borrow money are generally deductible over the life of the loan. See Pub. 936 to figure the amount you can deduct. Points paid for other purposes, such as for a lender's services, are not deductible.
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e1014
Refinancing.(p8)
For Use in Tax Year 2013
rule
Generally, you must deduct points you paid to refinance a mortgage over the life of the loan. This is true even if the new mortgage is secured by your main home.
If you used part of the proceeds to improve your main home, you may be able to deduct the part of the points related to the improvement in the year paid. See Pub. 936 for details.
taxtip
If you paid off a mortgage early, deduct any remaining points in the year you paid off the mortgage. However, if you refinanced your mortgage with the same lender, see Mortgage ending early in Pub. 936 for an exception.
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e1044

Line 13(p8)

For Use in Tax Year 2013
rule
taxmap/instr/i1040sca-003.htm#en_us_publink1000295225

Mortgage Insurance Premiums(p8)

For Use in Tax Year 2013
rule
Enter the qualified mortgage insurance premiums you paid under a mortgage insurance contract issued after December 31, 2006, in connection with home acquisition debt that was secured by your first or second home. Box 4 of Form 1098 may show the amount of premiums you paid in 2013. If you and at least one other person (other than your spouse if filing jointly) were liable for and paid the premiums in connection with the loan, and the premiums were reported on the other person's Form 1098, report your share of the premiums on line 13. See Prepaid mortgage insurance premiums, later, if you paid any premiums allocable to any period after 2013.
Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service (or their successor organizations), and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006).
Mortgage insurance provided by the Department of Veterans Affairs and the Rural Housing Service is commonly known as a funding fee and guarantee fee respectively. These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Contact the mortgage insurance issuer to determine the deductible amount if it is not included in box 4 of Form 1098.
taxmap/instr/i1040sca-003.htm#en_us_publink1000295226
Prepaid mortgage insurance premiums.(p8)
For Use in Tax Year 2013
rule
If you paid qualified mortgage insurance premiums that are allocable to periods after 2013, you must allocate them over the shorter of:
The premiums are treated as paid in the year to which they are allocated. If the mortgage is satisfied before its term, no deduction is allowed for the unamortized balance. See Pub. 936 for details.
The allocation rules, explained earlier, do not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service (or their successor organizations).
taxmap/instr/i1040sca-003.htm#en_us_publink1000295227
Limit on amount you can deduct.(p8)
For Use in Tax Year 2013
rule
You cannot deduct your mortgage insurance premiums if the amount on Form 1040, line 38, is more than $109,000 ($54,500 if married filing separately). If the amount on Form 1040, line 38, is more than $100,000 ($50,000 if married filing separately), your deduction is limited and you must use the Mortgage Insurance Premiums Deduction Worksheet to figure your deduction.
taxmap/instr/i1040sca-003.htm#en_us_publink1000295228
pencil

Mortgage Insurance Premiums Deduction Worksheet—Line 13

  • See the instructions for line 13 to see if you must use this worksheet to figure your deduction.
  
1. Enter the total premiums you paid in 2013 for qualified mortgage insurance for a contract issued after December 31, 20061. 
2. Enter the amount from Form 1040, line 382.  
3. Enter $100,000 ($50,000 if married filing separately)3.  
4. Is the amount on line 2 more than the amount on line 3?    
   box No.Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 13. Do not complete the rest of this worksheet.     
   box Yes.Subtract line 3 from line 2. If the result is not a multiple of $1,000 ($500 if married filing separately), increase it to the next multiple of $1,000 ($500 if married filing separately). For example, increase $425 to $1,000, increase $2,025 to $3,000; or if married filing separately, increase $425 to $500, increase $2,025 to $2,500, etc. 4.  
5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result as a decimal. If the result is 1.0 or more, enter 1.0 5.   . 
6. Multiply line 1 by line 56. 
7. Mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result here and on Schedule A, line 13 7. 
  
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e1070

Line 14(p8)

For Use in Tax Year 2013
rule
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e1075

Investment Interest(p8)

For Use in Tax Year 2013
rule
Investment interest is interest paid on money you borrowed that is allocable to property held for investment. It does not include any interest allocable to passive activities or to securities that generate tax-exempt income.
Complete and attach Form 4952 to figure your deduction.
taxmap/instr/i1040sca-003.htm#en_us_publink53061xd0e1093
Exception.(p8)
For Use in Tax Year 2013
rule
You do not have to file Form 4952 if all three of the following apply.
  1. Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends.
  2. You have no other deductible investment expenses.
  3. You have no disallowed investment interest expense from 2012.
caution
Alaska Permanent Fund dividends, including those reported on Form 8814, are not investment income.
For more details, see Pub. 550.