HOME EQUITY: How to
run an equity equation
Locate your Schedule
A, an IRS form used to add up your eligible deductions,
including mortgage and home equity interest payments, medical
expenses and charitable donations.
Find the annual statements provided
by your mortgage and home equity lender. Determine how much
interest you can deduct and enter the result on the appropriate
line, which can be found under the "Interest You Paid" subsection
of the form.
Take the sum of all your itemized deductions
and compare it to the standard deduction allowed all taxpayers
for the current tax year. If the itemized number is greater,
you should qualify for additional tax relief.