The Internal Revenue Service has delivered a valuable gift to those with $1 million-plus mortgages on their mansions. In an internal legal memo released publicly last month, the IRS concluded that a taxpayer can deduct interest on the first $1.1 million of a home mortgage–$100,000 more than earlier legal findings allowed.
The ruling is a boon to the 137,670 taxpayers who, according to First American CoreLogic, a mortgage data firm, have mortgage balances above $1 million.
Depending on their tax bracket and the interest rate on their jumbo mortgages, the affected homeowners could save $3,000 a year or more, figures Kaye Thomas, a tax lawyer who publishes a tax guide at
