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Solved

Mortgage Interest Deduction on two homes - and applying the cap

Forum|Forum|3 years ago
January 31, 2023
1 reply
37 views

I have two homes I use for personal use.

Mortgage 1 - has a loan origination of 12/2015 and has a $540K balance

Mortgage 2 - has a loan origination of 6/2021 and has a $420K balance

I know there is a $750K limit for mortgages after 2017 but prior to that date, the cap was $ 1 million.

Can I claim the interest off both these loans, given the original loan (that would put me over the $750K mark but under the $ 1 million mark) was prior to 2017?

Best answer by DavidD66

You can claim the total amount of interest from both mortgages. Your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 15, 2017 will continue to receive the same tax treatment as under the old rules.

Level 15

You can claim the total amount of interest from both mortgages. Your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 15, 2017 will continue to receive the same tax treatment as under the old rules.

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