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New Member
posted Feb 17, 2020 12:08:18 PM

Am I crazy or do the dates in the mortgage interest deduction instructions contradict the examples provided below the instructions...Dec. 15, 2017 vs. Dec. 15, 2018?

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1 Replies
Expert Alumni
Feb 20, 2020 5:58:22 PM

The tax rules on mortgage interest deductions changed from 2017 to 2018. The limit on the amount of interest has changed under the Tax Cuts & Jobs Act. The interest deduction pre-TCJA has been available to qualified mortgage debt up to $1 million ($500,000 married filling separately).

 

Through 2025, the TCJA has lowered the amount of qualified mortgage debt to $750,000. For qualified mortgage debt incurred on or before December 15, 2017, the $1 million limit remains in place, thus "grandfathering" existing mortgage debt.