What about if I refinanced my primary property the property that secures the loan and used the proceeds to buy a second property? Also under my name?
I think I am getting confused by the language:
California does not conform to the new federal law that limits taxpayers to the interest on $750,000 ($375,000 for married filing separate) of home mortgage acquisition debt. California allows taxpayers to deduct interest on loans up to $1,000,000 ($500,000 for married filing separate). Additionally, federal law also limited the deduction on up to
$100,000 for interest on home equity indebtedness, UNLESS THE LOAN WAS USED TO BUY, BUILD, OR SUBSTANTIALLY IMPROVE your home that secures the loan.