Are there any Tax Deductions for Private school?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about mortgage interest on a 5 million dollar house, what is the cap on that?

$1M max

Just to be clear, the max is $1M in interest, not a $1M home ... So if your interest rate is 4% you could write off all the mortgage interest about $1M on a $25M mortgage.

Incorrect

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about mortgage interest on a 5 million dollar house, what is the cap on that?

$1M max

Just to be clear, the max is $1M in interest, not a $1M home ... So if your interest rate is 4% you could write off all the mortgage interest about $1M on a $25M mortgage.

I'd like to hire you as my accountant - I will pay well, but you agree to pay for any "IRS issues" that may arise from your approach.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about mortgage interest on a 5 million dollar house, what is the cap on that?

$1M max

Just to be clear, the max is $1M in interest, not a $1M home ... So if your interest rate is 4% you could write off all the mortgage interest about $1M on a $25M mortgage.

Incorrect

What is 4% of $25M?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about mortgage interest on a 5 million dollar house, what is the cap on that?

$1M max

Just to be clear, the max is $1M in interest, not a $1M home ... So if your interest rate is 4% you could write off all the mortgage interest about $1M on a $25M mortgage.

Incorrect

What is 4% of $25M?

The cap is on the loan not the interest so for $1m and your loan is 4% the tax write off is $40k.

[Anonymous]

You can deduct up to $4k in tuition and fees (but not room and board) so long as you are not also taking the American Opportunity or Lifetime Learning tax credits, and so long as the deducted tuition was not paid for from a Coverdell or 529 account (this is so you don't double dip on tax savings). It phases out at higher incomes like PP said. The full $4k is available for single filers with MAGI=$65k and couples with MAGI=$130k. Above these incomes and up to income=$80k for singles and income=$160k for couples, the tax break is for paying college tuition and fees up to $2,000.

So this doesn't really help OP in the sense that it's somehow a tax break for rich people who pay for education. It's to help lower- and middle-income families pay for higher education, on the grounds that there are no free higher education alternatives, as there are with K-12.

Well with all this discussion of AMT, I doubt these tax credits and deductions are even remotely relevant to most of the people here.

[Anonymous]

How about a "company car" is there a cap on that?

[Anonymous]

Free accounting advice courtesy of DCUM

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I hope not.

Why not? It doesn't seem fair to pay taxes for school and pay for private school.

Tough shit. Private school is a choice for a privileged few. Quit your entitled whining. It's embarrassing.

Says the person who writes off 3 martini lunches.

Who has 3 martini lunches? Is this 1975?

haha enjoyed that one

[Anonymous]

Anonymous wrote:Free accounting advice courtesy of DCUM

You get what you pay for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about mortgage interest on a 5 million dollar house, what is the cap on that?

$1M max

$1.1 million ,actually.

Correct and that can be $1M on the interest paid on the residence and the interest paid on a $100K home equity loan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about mortgage interest on a 5 million dollar house, what is the cap on that?

$1M max

Just to be clear, the max is $1M in interest, not a $1M home ... So if your interest rate is 4% you could write off all the mortgage interest about $1M on a $25M mortgage.

Either you're wrong or I don't understand how you are presenting it. If you own (I wish!) a $5M home and have secured it with a $3M loan, the interest paid on $1M of the $3M is deductible (which is why we got an interest-only loan). Then you can deduct the interest paid on the additional $100K acquired either through additional loan or a home equity loan. Again, it's the money paid on the interest, not on the principal.