Home Mortgage Interest Limitation Smart Worksheet - Debit Origination

[slamantia1971]

Trying to understand how to answer the question D in the Smart Worksheet.  Answering Yes/No has a impact on the deduction.

"Debt orginated before 12/14/2017 and debt amount has not increased since orgination OR Home purchase under contract before 12/15/2017 and closed before 4/1/2018? (no cash out refinances after 12/14/2017 in both cases)"

I bought my house in 2005 but have changed lenders a couple of times to refinance down to a lower interest rate.  But it is still the same loan.   I never took cash out on a refinance.

I think my answer is "Yes" but the way it is worded is making me second guess.

[RaifH · Accepted solution]

Yes, you want to answer yes. A refinance does not change your original acquisition date back in 2005 since you didn't take cash out. 

Deductible interest begins to be limited for homes purchased before December 15, 2017 if your outstanding mortgage principal exceeds $1 million. Homes purchased after that date have a lower limit of $750,000. You should see a bigger deduction when you answer Yes to that question because a greater percentage of your interest is an eligible deduction.