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sumita71
Returning Member

I have 2 loans....one main loan for $1.1M and one home equity loan for $800K for last few months of 2016 at a higher rate. How can optimize use of the $1.1M limit?

 
3 Replies
BobB7
New Member

I have 2 loans....one main loan for $1.1M and one home equity loan for $800K for last few months of 2016 at a higher rate. How can optimize use of the $1.1M limit?

You really don't have a lot of flexibility here.  Assuming that you legitimately have 1.1 million of home acquisition debt, then you claim the interest on the first million of that there and interest on 100,000 of the home equity debt, making sure that you make an AMT adjustment for that part.

sumita71
Returning Member

I have 2 loans....one main loan for $1.1M and one home equity loan for $800K for last few months of 2016 at a higher rate. How can optimize use of the $1.1M limit?

Got it - the $800K home equity loan was only originated in Oct, 2016.....so can I only deduct interest on the $100K for ~3 months or can I somehow deduct a higher amount to account for fact it's not an entire year?
BobB7
New Member

I have 2 loans....one main loan for $1.1M and one home equity loan for $800K for last few months of 2016 at a higher rate. How can optimize use of the $1.1M limit?

No, just what you pay each month subject to a 100000 (principal amount) cap each month.

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