Since I refinanced my home to pay my ex-wife for her share of our home, how much of the interest on my new mortgage can I claim as a deduction?

[keltyj42]

My wife and I jointly owned our house with a mortgage balance of $40k. When we divorced, I refinanced my mortgage with a new balance of $225k because I had to pay my ex-wife $160k for her share of the house's value (rather than the equity). How much of the interest on my $225k mortgage can I claim as a deduction?

[DDollar · Accepted solution]

I would say all of it, since what you effectively did was purchase your wife's interest in the house.