mortgage interest total deduction?

[baker10]

My husband is a self employed contractor. In the last few years, our accountant has only deducted a percentage of our mortgage interest pd and real estate taxes based on the size of my husband's office compared to our total house size. I always thought that mortgage interest was totally tax deductable and had nothing to do with whether or not your business was ran out of your home. This year, we had a much higher interest payment ( about 7,000 more) and I would of course like to get what we are entitled to as far as a refund. Any thoughts would be appreciated.

 

[abezon]

It's all deductible, but only the percentage relating to the home office is deductible on schedule C. The remainder is claimed on schedule A if you itemize.

 

[baker10]

Thank you! That clears things up for me. I guess in previous years, we took the standard deduction rather than itemizing. Just our mortgage interest alone is higher than the standard deduction this year, so I will make sure our accountant itemzes our deductions. Thanks for your reply.