There was a lot of back and forth and changes to the way this part of the new code was written, but it finally settled on this ... for new mortgages on a primary residence after December 15, 2017, a deduction for mortgage interest is only allowed on the first $750k of debt. This means that if your mortgage is for $900,000 you will only be deducting approximately 83% of the interest you pay each year. Mortgages in place prior to the 12/15/17 date are still subject to a maximum of $1,000,000 of debt for which mortgage interest can be deducted.
In addition, the deduction for equity loan interest against your home is eliminated.
We are on top of this new tax law here at LCI Taxes and are ready to help you and your family prepare for these changes as well as any others that may be forthcoming. Give us a call at 386-586-3976 with questions or to schedule your appointment!
Chris Kocher CPA