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When this happens and you are still employed the overdue payments and accrued interest will become taxable income and will be subject to a 10 excise tax if you are under age 59-1/2. The deductibility of the interest you pay is subject to the general phase-out of interest deductions resulting from the Tax Reform Act of 1986. The purchase excluding mortgage payments of a principal residence for me. You will be required to complete additional documentation or provide additional evidence if you...
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