The Federal law limited the mortgage interest deduction acquisition debt maximum from $1,000,000 ($500,000 for married filing separately) to $750,000 ($375,000 for married filing separately). California does not conform to the Federal law.
If your mortgage acquisition debt exceeds $1,000,000 ($500,000 for married filing separately) to $750,000 ($375,000 for married filing separately). your mortgage interest was reduced on your Federal return.
You would calculate the adjustment subtract the mortgage interests reported on the Schedule A from the mortgage interest reported on the Form 1098 from the mortgage lender.
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