Mortgage interest is still a deductible itemized deduction in 2018, just like it was in 2017.
The change, however, is the Standard Deduction is going to be $12,000 for single and $24,000 for married filing Joint.
The total itemized deductions need to exceed this amount before it starts impacting the return and lowering your taxes.
So many that itemize in 2017, may not be able to in 2018 as the standard deduction may be higher for them.
Home Equity
Home Equity is deductible in 2018 if it considered: Acquisition indebtedness is defined as “indebtedness that is secured by the residence and that is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer”. It seems likely, under this definition, if you took out a home equity loan to build an addition on your house, that would be classified as a “substantial improvement” and you would be able to continue to deduct the interest on that home equity loan in 2018. Where we need help from the IRS is further clarification on the definition of “substantial improvement”.
See below for more details on itemizing.
https://ttlc.intuit.com/replies/6598809
