While the federal government offers a mortgage interest deduction, California takes a different approach.
* **Debt for a rental property**: Interest on loans for rental properties is not deductible on your federal income tax return.
Find out more <a href=https://tradeprofinances.com/mortgage/is-mortgage-interest-tax-deductible-in-california/>https://tradeprofinances.com/mortgage/is-mortgage-interest-tax-deductible-in-california/</a>
<h2>Calculating the Deduction</h2>
1. **Federal Deduction:** When you deduct mortgage interest on your federal return, your AGI is reduced.
## Beyond the Deduction: Other Tax Considerations
* **Shop Around for a Mortgage:** Different lenders offer varying interest rates, so it's essential to shop around and compare offers before committing to a mortgage. Lower rates can result in lower interest payments, which translates to higher tax deductions.
This seemingly straightforward rule, however, can be influenced by several factors, including:
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