Yes, you are bound to the $375,00 mortgage interest limit for Married Filing Separately (MFS).
In general, you can deduct the mortgage interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary or second home. If you are married and filing separately, the limit drops to $375,000. It does not matter that your wife did not claim the deduction on her return.
IRS states that "mortgages for you (or your spouse if married filing a joint return) took out after December 15, 2017, to buy, build, or substantially improve your home (called home acquisition debt), but only if throughout 2023 these mortgages plus any grandfathered debt totaled $750,000 or less ($375,000 or less if married filing separately)."
The total amount of deductible state and local income taxes, including property taxes, is limited to $10,000 per year.
IRS clearly explains the Home Mortgage Interest Deduction.
[Edited 2/6/2024 | 8:45am PST]
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