No, you have always been allowed to allocate a portion of your home mortgage interest to your home office expense. Any remaining home mortgage interest will be allocated to your personal itemized deductions. So when it comes to deductible mortgage interest, you will get the full benefit of this deduction where or not you include any mortgage interest under the home office expense as long as you are itemizing your deductions.

According to the IRS, certain expenses are deductible whether or not you use your home for business. If the expense is indirect, use the business percentage of these expenses to figure how much to include in your total business-use-of-the-home deduction. These expenses include the following;

• Real estate taxes.
• Qualified mortgage insurance premiums
• Home mortgage interest.
• Casualty losses.

Please click on IRS - Business Use of Your Home for more information.