Deductible home mortg Interest

[Anonymous]

I have two properties.

Property A’s original loan was in June 2017, refinanced in 2020. No cash out.  Loan amount is $258,274

Property B’s original loan was in October 2021. Loan amount is $812,202. 

How is deductible mortgage interest calculated? 

[MarilynG1]

If you're using TurboTax Desktop, you can review the Mortgage Interest Worksheet after you have entered your 1098's in the interview. 

For TurboTax Online, you will need to save a PDF copy of your return to your computer to review it.

In your case, the interest deduction on your second loan will be limited as the new limit is 750K.

Here's more detailed info on Deducting Mortgage Interest and Mortgage Interest FAQs.

[Anonymous]

But is the first loan also limited since the sum of the two loans is more than $1M?

[DMarkM1]

All the numbers will be totals.  For example:  Property A loan average 250,000  Property B loan average 800,000   Total loan average 1,050,000.  Your loan limit is 750,000.   750,000/1050000 = .714    .714 x your total interest paid from box 1 of forms 1098 = deductible interest.