topic 2 Mortgages over the $750K limit in Deductions & credits

2 Mortgages over the $750K limit

garman7777 — Wed, 11 Feb 2026 04:43:07 GMT

I have two mortgages in 2023 with over $750K in outstanding balance. The larger mortgage is $1.2M outstanding at 5%. The smaller mortgage is $800K outstanding at 2.75%.

May I only deduct the larger mortgage (which as much more interest paid) up to $750K? In other words, I paid twice as much mortgage interest on the bigger loan, and I want to maximize the amount of the deduction.

Re: 2 Mortgages over the $750K limit

zomboo — Fri, 02 Feb 2024 18:27:59 GMT

The short answer is no, not exactly. The remaining acquisition debt for the two loans are added together and then limited to $750K to figure the percentage of interest that can be deducted. 750K /(1.2M + 800K) = 37.5%. So you can deduct 37.% of the total interest paid.

Re: 2 Mortgages over the $750K limit

Opus 17 — Fri, 02 Feb 2024 18:28:52 GMT

No, you have to enter them together and it gets averaged. There is an approved method in IRS publication 936 and Turbotax follow that method.

https://www.irs.gov/forms-pubs/about-publication-936

Re: 2 Mortgages over the $750K limit

garman7777 — Sat, 03 Feb 2024 16:08:20 GMT

Thank you.