Hello @DeniseMCPA ,
Does this statement "debt you incurred to buy, build, or substantially improve your home, to the extent it is more than the home acquisition debt limit ($1,000,000), may qualify as home equity debt. " hold even for 2021 CA taxes?
Specifically, I have $1,393,000 in mortgage on my primary home that was a loan originated in 2017 - so $1,000,000 limit applies. Can I take $100,000 of the remaining $393,000 as home equity debt? If so, how to accomplish that in the Turbotax forms? In 2021 Turbotax forms, they have separated out "Deductible Home Mortgage Interest in Acquisition Debt" and "Deductible Home Mortgage Interest in Non-Acquisition Debt". They seem to define "Non-Acquisition Debt" as "Home mortgage debt NOT used to buy, build or improve the taxpayer's home". Is this correct?
