Question: Report stock loss and home mortgage interest on tax return?

(Posted by: kof98_kwai on 2009-12-30 07:24:30)

I have stock @ a loss i am thinking to sell it before 12/ 31/ 09 to get some tax deduction. I know that i can get tax deduction up to 3000? However, I pay for home mortgage interest too . would the stock deduction have any affect on home mortgage interest deduction portion ? like... if i use that 3000 tax deductible then i cant get home mortgage deduction ? how it work ?

Posted by: garyg7 on 2009-12-30, 07:45:10

Capital losses can offset capital gains and up to $3,000 of ordinary income. You prepare Schedule D to determine your net capital gains or your allowed loss. Mortgage interest is one of the primary deductions claimed on Schedule A. Your total deductions, however, must exceed your standard deduction ($11,400 for those filing as Married Filing Jointly, $5,700 for those who file as Single, Unmarried) before you see a tax benefit. Schedules A and D are only tangentially related. Having a capital loss does not, in and of itself, preclude you from taking a deduction for mortgage interest and vice versa. I hope this helps. Gary

Posted by: the tax lady on 2009-12-30, 07:42:20

The $3000 of loss flows from schedule D. The mortgage interest flows from schedule A. They have no affect on each other.

Posted by: tro on 2009-12-30, 08:59:41

Your stock loss is on sch D, and if you have a loss you can deduct up to $3000 on this year's return, if you have more than that it will carry forward your mortgage interest is included in your itemized deductions(medical, taxes, charities, casualties, misc. etc)