AmyC
Expert Alumni

Deductions & credits

Correct, once you have paid off the loan and fixed the house and spent the rest, the percentages are set. So, as in your example, 75% of the mortgage interest each year would be deductible. You should keep your expenses together in case you are investigated. Those records are best kept in your separate financial folder rather than with your tax records. You do need to make a note that 75% is deductible moving forward.

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