How do I calculate my home mortgage interest when it needs to be limited?
For debt taken out after December 15, 2017
If you took out your loan after December 15, 2017, you can only deduct home mortgage interest on up to $750,000 ($375,000 if Married Filing Separately) of that debt.
For debt taken out on or before December 15, 2017
If you took out your loan on or before December 15, 2017, you can deduct home mortgage interest on up to $1,000,000 ($500,000 if Married Filing Separately) of that debt.
If your total home mortgage debt is less than or equal to your allowed limit, enter the full amount of your mortgage interest. If your debt is higher than the limits, enter the full amount of your mortgage interest and we'll ask you more questions to figure out how much interest you can deduct using the average of first and last balance method. If you want to use a different method to figure how much interest you can deduct, use Publication 936 and enter your deductible interest on the Mortgage Interest Deduction Summary screen.
If you have loans that are subject to both the $750,000 limit and $1,000,000 limit, the $750,000 limit for debt taken out after December 15, 2017 is reduced by the amount of your qualifying debt subject to the $1,000,000 limit.
Home equity loans are only deductible if used to buy, build, or substantially improve your home. A home equity loan must also be secured by your home and must not be more than the cost of the home.
If you took out your loan after December 15, 2017, you can only deduct home mortgage interest on up to $750,000 ($375,000 if Married Filing Separately) of that debt.
For debt taken out on or before December 15, 2017
If you took out your loan on or before December 15, 2017, you can deduct home mortgage interest on up to $1,000,000 ($500,000 if Married Filing Separately) of that debt.
If your total home mortgage debt is less than or equal to your allowed limit, enter the full amount of your mortgage interest. If your debt is higher than the limits, enter the full amount of your mortgage interest and we'll ask you more questions to figure out how much interest you can deduct using the average of first and last balance method. If you want to use a different method to figure how much interest you can deduct, use Publication 936 and enter your deductible interest on the Mortgage Interest Deduction Summary screen.
If you have loans that are subject to both the $750,000 limit and $1,000,000 limit, the $750,000 limit for debt taken out after December 15, 2017 is reduced by the amount of your qualifying debt subject to the $1,000,000 limit.
Home equity loans are only deductible if used to buy, build, or substantially improve your home. A home equity loan must also be secured by your home and must not be more than the cost of the home.
