Description
Home mortgage interest rates are currently at multi-year highs, resulting in increased payments for clients. Compounding this issue, the federal mortgage interest deduction limit of $750,000 significantly impacts owners of multi-million-dollar homes and most second-home owners, who often cannot deduct interest beyond this threshold.
This training session explores a "Tax-Optimized Mortgage Debt Restructure" process, which can, in many cases, enable clients to deduct part or all of the excluded interest. For instance, clients with combined tax rates of 50% or higher, loan amounts of $1.5 million, and interest rates of 6% could realize annual, recurring tax savings exceeding $20,000 through this specialized restructuring approach.
Learning Objectives
Evaluate the tax-optimized mortgage debt restructuring process
Understand the potential value and tax benefits to clients using this debt restructuring process.
Examine how to identify clients who are most likely to benefit from tax-optimized debt restructuring