Deductible home mortg Interest

Forum|Forum|3 years ago
January 31, 2023
3 replies
9 views

I have two properties.

Property A’s original loan was in June 2017, refinanced in 2020. No cash out. Loan amount is $258,274

Property B’s original loan was in October 2021. Loan amount is $812,202.

How is deductible mortgage interest calculated?

MarilynG

Level 15

If you're using TurboTax Desktop, you can review the Mortgage Interest Worksheet after you have entered your 1098's in the interview.

For TurboTax Online, you will need to save a PDF copy of your return to your computer to review it.

In your case, the interest deduction on your second loan will be limited as the new limit is 750K.

Here's more detailed info on Deducting Mortgage Interest and Mortgage Interest FAQs.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Anonymous

But is the first loan also limited since the sum of the two loans is more than $1M?

DMarkM1

Level 15

All the numbers will be totals. For example: Property A loan average 250,000 Property B loan average 800,000 Total loan average 1,050,000. Your loan limit is 750,000. 750,000/1050000 = .714 .714 x your total interest paid from box 1 of forms 1098 = deductible interest.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"