qualified residence interest
- Interest on a debt backed by a person's home, which can be subtracted from the adjusted gross income according to U.S. federal tax law. This debt must be a result of acquiring, constructing, improving, or refinancing the home, or due to a home equity loan
- The couple was grateful for the reduction in their taxable income due to the qualified residence interest from their home loan.
- To help pay for their new kitchen, they took out a home equity loan, knowing they could deduct the qualified residence interest on their taxes.
- Their tax advisor recommended refinancing their house to take advantage of the potential for qualified residence interest tax deductions.