qualified residence interest

Definition of "qualified residence interest"
  1. 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
How to use "qualified residence interest" in a sentence
  1. The couple was grateful for the reduction in their taxable income due to the qualified residence interest from their home loan.
  2. 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.
  3. Their tax advisor recommended refinancing their house to take advantage of the potential for qualified residence interest tax deductions.

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