Outstanding Mortgage balance

[Lkama]

If the outstanding balance as of Jan 1st is $500K, and you are filing "married filing separate". Do you list 1/2 ($250K) the amount of the outstanding balance or do you leave the full amount when filing Itemized deduction. My spouse will also list $250K on his head as outstanding balance. AND does this make a difference?

[ThomasM125]

You would enter $250,000 for each taxpayer, since you are filing married/separate. It shouldn't make a difference though as you would still be allowed a full deduction for your mortgage interest under the rules applicable to 2024.

[Lkama]

Thank you Thomas, but what if the outstanding mortgage is $540K (actual amount), can we still split the difference?