Phone: 866-300-4618; 586-772-6073

  • Blog
  • Online Newsletter

Spousal Buy-Out Debt

Generally, a taxpayer’s home mortgage interest is limited to the interest on acquisition debt and $100,000 of equity debt. In a divorce action sometimes one spouse will buy out the other. Often in these situations, the buying spouse will incur additional debt to buy out the other spouse. The IRS in notice 88-74 has stated that in this situation, the additional debt, secured by the home, to buy out other spouse will be treated as acquisition debt.

POPULAR PAGES

First Name:
Last Name:
E-mail Address:
I would like information on: 1040 & Personal Finance
IRS Tax Problems
Quickbooks Tips
Small Business
       

Privacy Policy
  • Sign up for our newsletter and receive the latest tax updates and due date reminders.
  • Location
  • CSL Accounting & Tax Services LLC
    27109 Harper
    St. Clair Shores, Michigan 48081
  • Phone
  • 866-300-4618; 586-772-6073