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htviet147
New Member

I bought and sold a home in 2018. Do I treat mortgage interest deduction separately? 1st home, interest up to 1million and 2nd home, interest up to 750K?

 
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DanielV01
Expert Alumni

I bought and sold a home in 2018. Do I treat mortgage interest deduction separately? 1st home, interest up to 1million and 2nd home, interest up to 750K?

Yes.  Since the first home was purchased (I would imagine) before December 23, 2017, it has the grandfathered-in provision of a $1,000,000 limit for determining deductible mortgage interest.  The new home purchased after that date falls under the new $750,000 limitation.  If your new home mortgage was more than $750,000 of acquisition debt, the deductible portion of your interest will be phased-down in proportion to how much over the $750,000 limitation your loan is.  (You will be able to claim a percentage of the mortgage interest but not all of it).

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