Married filing separately mortgage interest

sg99 · ‎January 19, 2020

My spouse and I are MFS since this will be SIGNIFICANTLY reduce his loan payment under PSLF program.

We own a home with Loan of $720,000 in community property state. How do we apply the "Limitation On Acquisition Indebtedness" ? I understand for MFS this is $375,000.

Does that mean we are each responsible for 50% of the loan balance (360k) and are therefore able to can claim 50% of total mortgage interest that was paid 2019?

Thanks!

ReginaM · ‎January 20, 2020

Yes, the Limitation on Acquisition is $375,000 for individuals filing Married Filing Separate.

Since you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you will want to divide the 1098 deductions 50/50.)

Here is a link to IRS Publication 936, Home Mortgage Interest Deduction if you have further questions.

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View solution in original post

ReginaM · ‎January 20, 2020

Yes, the Limitation on Acquisition is $375,000 for individuals filing Married Filing Separate.

Since you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you will want to divide the 1098 deductions 50/50.)

Here is a link to IRS Publication 936, Home Mortgage Interest Deduction if you have further questions.

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

Married filing separately mortgage interest