from IRS schedule A instructions.
Limits on home mortgage interest.
Your deduction for home mortgage interest is subject to a number of limits. If
one or more of the following limits applies, see Pub. 936 to figure your deduction.
Limit for loan proceeds not used to
buy, build, or substantially improve
your home. You can only deduct home
mortgage interest to the extent that the
loan proceeds from your home mortgage
are used to buy, build, or substantially
improve the home securing the loan
("qualifying debt"). Make sure to check
the box on line 8 if you had one or more
home mortgages in 2018 with an outstanding balance and you didn't use all
of the loan proceeds to buy, build, or
substantially improve the home. The only exception to this limit is for loans taken out on or before October 13, 1987;
the loan proceeds for these loans are
treated as having been used to buy,
build, or substantially improve the
home. See Pub. 936 for more information about loans taken out on or before
October 13, 1987.
See Pub. 936 to figure your deduction
if you must check the box on line 8.
Limit on loans taken out on or before December 15, 2017. For qualifying debt taken out on or before December 15, 2017, you can only deduct home
mortgage interest on up to $1,000,000
($500,000 if you are married filing separately) of that debt. The only exception
is for loans taken out on or before October 13, 1987; see Pub. 936 for more information about loans taken out on or
before October 13, 1987.
See Pub. 936 to figure your deduction
if you have loans taken out on or before
December 15, 2017, that exceed
$1,000,000 ($500,000 if you are married
filing separately).
Limit on loans taken out after December 15, 2017. For qualifying debt taken out after December 15, 2017, you
can only deduct home mortgage interest
on up to $750,000 ($375,000 if you are
married filing separately) of that debt. If
you also have qualifying debt subject to
the $1,000,000 limitation discussed under Limit on loans taken out on or before December 15, 2017, earlier, the
$750,000 limit for debt taken out on or
after December 15, 2017, is reduced by
the amount of your qualifying debt subject to the $1,000,000 limit. An exception exists for certain loans taken out after December 15, 2017, but before April
1, 2018. If the exception applies, your
loan may be treated in the same manner
as a loan taken out on or before December 15, 2017; see Pub. 936 for more information about this exception.
See Pub. 936 to figure your deduction
if you have loans taken out after October
13, 1987, that exceed $750,000
($375,000 if you are married filing separately).
Limit when loans exceed the fair
market value of the home. If the total
amount of all mortgages is more than
the fair market value of the home, see
Pub. 936 to figure your deduction.
