Search results
Your home mortgage interest deduction is limited to the interest on the part of your home mortgage debt that isn't more than your qualified loan limit. This is the part of your home mortgage debt that is grandfathered debt or that isn't more than the limits for home acquisition debt.
People also ask
Is grandfathered debt deductible?
Are refinanced mortgages grandfathered debt?
Can I deduct mortgage interest on grandfathered debt?
How do I qualify for a grandfathered mortgage?
Feb 1, 2019 · However, for taxpayers that have an existing mortgage on their residence obtained prior to December 16, 2017, the debt limit remains $1,000,000 ($500,000 if MFS). This older mortgage debt is considered “Grandfathered Debt” and is not impacted by the new $750,000 cap.
- (781) 938-0045
Apr 1, 2023 · • If they refinance the existing mortgage for $700,000 (in order to obtain a lower interest rate) over 24 years or less, then the entire amount of mortgage interest paid is “grandfathered” and fully deductible.
Dec 16, 2017 · The Tax Cuts and Jobs Act (TCJA) changes the rules for deducting interest on home loans. Most homeowners will be unaffected because favorable grandfather provisions will keep the prior-law rules for home acquisition debt in place for them.
May 15, 2024 · Mortgages you took out on your main home and/or a second home on or before October 13, 1987 (called "grandfathered" debt, because these are mortgages that existed before the current tax rules for mortgage interest took effect).
- (675)
- Intuit Turbotax
Jul 16, 2023 · Generally, your interest-only mortgage is 100% deductible, as long as the total debt meets the limits. According to the Internal Revenue Service, you can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of debt.
Under the TCJA, even though the loans fall within the guidelines of grandfathered debt, the interest paid on the $100,000 equity line is not deductible because the proceeds of the loan weren't used to buy, build, or substantially improve the property that the debt is secured by.
