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Mortgage & Home Equity loan Interest? Max?

Is the total max interest amount $1.1M or 1M?

Original mortgage $1.3M in 2015

Home Equity loan $119K  in 2017 for our house addition.

Thanks!

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2 Replies
KarenJ2
Expert Alumni

Mortgage & Home Equity loan Interest? Max?

 

Your deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status) for tax years prior to 2018. Beginning in 2018, this limit is lowered to $750,000. Mortgages that existed as of December 14, 2017 will continue to receive the same tax treatment as under the old rules.

For tax years before 2018, you can also generally deduct interest on home equity debt of up to $100,000 ($50,000 if you're married and file separately) regardless of how you use the loan proceeds.

For details, see IRS Publication 936: Home Mortgage Interest Deduction.

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Mortgage & Home Equity loan Interest? Max?

it's $1 million

 

see IRS Publication 936 and work though the table on page 12. 

 

 

 

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