These prices are divided between you and the vendor based on the gross sales contract, native custom, or understanding of the events. If you built your home, you in all probability paid these prices when you bought the land or settled in your mortgage. If you repay your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest, offered the penalty isn’t for a specific service performed or price incurred in connection along with your mortgage loan. The deduction for state and local taxes, including general gross sales taxes, if elected instead of revenue taxes, is limited to $10,000 ($5,000 if married submitting separately).
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