Tax Topic

Mortgage Interest


To deduct mortgage interest on your Schedule A, it must be on a mortgage secured by your primary residence or vacation home, and the interest amount is limited to the interest on a combined mortgage amount of $1,000,000 as long as those proceeds were used for the acquisition or improvement of your home(s). In addition, you may deduct interest on up to $100,000 of equity debt, regardless of the use of the proceeds (meaning the proceeds did not need to be used for acquisition or improvement of your home).

However, effective 1/1/18, there are two substantial changes:
  1. interest amount is limited to interest on up to $750,000 of acquisition/improvement debt

  2. the equity interest deduction is no longer available
It is important that you provide us with a breakdown of the mortgage amounts based on the use of the funds, either acquisition/improvement of the secured home, or other; so that we can calculate what portion of the mortgage interest paid is actually deductible for you.


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