Hello,
My spouse and I are married and have a mortgage in both of our names (also paid for from joint funds) at the acquisition debt limit of $750,000. If we file separately, is our deduction reduced because the filing status reduces to debt limit to $375,000 per person or is that we each can only deduct up to half the interest paid on the entire $750,000 mortgage? In other words, if we each claim half of the total mortgage interest deduction does that mean we are only taking a deduction for up to $375,000 of the mortgage?
