My wife and I purchased our primary home a few years ago, which has a current outstanding mortgage principal of about 1.4M. So far in our married joint tax filings we were limited to deduct mortgage interest paid on only up to 750K. We are going to get divorced this year but we will still own the house and continue paying its property tax and mortgage bills together. Since from this year we expect to file our returns as single filers, our question is can the 750K mortgage principal for interest deduction apply to each of our returns separately, so we could potentially individually deduct almost twice the amount of mortgage interest than the combined 750K limit allowed us to in past years?
In a similar vein, can the SALT deduction limit of 10K also apply to each of us individually, so we can potentially deduct twice the amount of property taxes that we pay for this house -10K on her return and 10K on mine?
Same question also about the home energy efficiency credits. We will install a heat pump for which we can get a credit of 30% up to $2000. Can we show shared cost of that enhancement and each claim 30% up to $2000 each?
