Some marketers are touting a “consumer rebate” in order to get individuals to subscribe to certain newsletters or buy other materials. The so-called rebate is nothing more than a tax deduction for state and local sales tax that individuals who itemize can claim if they don’t deduct state and local income tax. To emphasize, there is no special “consumer rebate” in the tax law; there is only an itemized deduction for state and local sales tax. And this deduction cannot be claimed if the individual opts to deduct state and local income taxes.
Debt used to buy, build, or construct a principal residence or second home and that generally qualifies for a full interest expense deduction.