I sold a house in 2019 with a remaining mortgage of $918,000 (which started in 2014 at $950,000) and bought another house with a total mortgage of $1,600,000. Is my allowable deduction limited to $750,000 or the earlier amount?
If the former, how do I enter the information in TT?
Thanks
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Because you have a new loan that was started in 2019, the rules in place in 2019 apply. ($750,000 deductibility limit.) You don't get a grandfathered limit. If you enter your 1098 form, Turbotax should ask the questions needed to calculate the deductible amount of your interest.
Thank you.
So anyone who has an "old" mortgage over $750,000 who buys a new house will forfeit the grandfathered loan? Doesn't seem logical since you still have a loan but then I guess it is tax law.
Because there’s nothing to grandfather. The old loan is paid off and closed, and a new loan is created.
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