The Tax Cuts and Jobs Act imposed a lower dollar limit on mortgages qualifying for the home-mortgage-interest deduction. Beginning in 2018 and until 2025, taxpayers may only deduct interest of $750,000 of qualified residence loans. This is down from the prior limits of $1 million. The limits apply to the combined amount of loans used to buy, build or substantially improve the taxpayer's main home and second home.
Additionally, the TCJA suspends from 2018 to 2025 the deduction for interest paid on home-equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer's home that secures the loan. The following examples illustrate these points.
This item is available in full to subscribers.
We have recently launched a new and improved website. To continue reading, you will need to either log into your subscriber account, or purchase a new subscription.
If you have an active digital subscription, then you already have an account here. Just reset your password, if you've not yet logged in to your account on this new site.
If you are a current print-only subscriber, and want access to our website,click here to view your options for changing you subscription level.
Otherwise, click here to view your options for subscribing.
Please log in to continue |
