Under the new tax bill, the limitation on qualified mortgage interest deduction is reduced from $1,000,000 to $750,00 of indebtedness. However, the binding contract exception applies if a taxpayer enters into a binding written contract before December 15, 2017 to close on the purchase of a principal residence before January 1, 2018 and purchases such residence before April 1, 2018, " The conference agreement provides that a taxpayer who has entered into a binding written contract
before December 15, 2017 to close on the purchase of a principal residence before January 1, 2018, and who
purchases such residence before April 1, 2018, shall be considered to incurred acquisition indebtedness prior to
December 15, 2017 under this provision".
I am trying to understand what the different dates mean, specifically January 1, 2017 and April 1, 2018 in the above context. For my case, I entered a binding contract on October 19, 2017 to close on a property on December 27, 2017. However, due to delays with the underwriting and survey, my closing date is now pushed to January 12, 2018. My understanding of the above text is that I should still qualify for the exception as my binding contract was entered into before December 15, 2017 for closing before January 1, 2018 and I eventually purchase the property before April 1, 2018. Is that interpretation accurate?
