Solved: Do I reduce the percentage of deductible interest on my refinanced mortgage, if I increased the new loan to pay off non-house related debt?
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Do I reduce the percentage of deductible interest on my refinanced mortgage, if I increased the new loan to pay off non-house related debt?

The increased refinanced mortgage exceeds the $100,000 allowable deducation.

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Employee Tax Expert

Do I reduce the percentage of deductible interest on my refinanced mortgage, if I increased the new loan to pay off non-house related debt?

Yes, reduce the mortgage amount by the % that would be allowed. Ex: New loan amount is $140,000. You can deduct $100,000/$140,000 (71%) of the interest amount.

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Highlighted
Employee Tax Expert

Do I reduce the percentage of deductible interest on my refinanced mortgage, if I increased the new loan to pay off non-house related debt?

Yes, reduce the mortgage amount by the % that would be allowed. Ex: New loan amount is $140,000. You can deduct $100,000/$140,000 (71%) of the interest amount.

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

View solution in original post

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