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, as long as the loan proceeds were used for the acquisition or improvement of your home(s).

The date you took out your mortgage or home equity loan may also impact the amount of interest you can deduct. If your loan was originated or treated as originating on or before Dec. 15, 2017, you may deduct interest on up to $1,000,000 ($500,000 if you are married filing separately) of qualifying debt. If your loan originated after that date, you may only deduct interest on up to $750,000 ($375,000 if you are married filing separately) of qualifying debt. The limits apply to the combined amount of loans used to buy, build or substantially improve your main home and second home.

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(s), or other; so that we can calculate what portion of the mortgage interest paid is actually deductible for you.

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