Plain Language of Change:
- Itemized deduction for home mortgage interest is limited to $750,000 ($375,000 if married filing separately) of acquisition debt from January 1, 2018 until December 31, 2025
- The new limit applies to any acquisition debt incurred after December 15, 2017
- The previous limit of $1 million ($500,000 if married filing separately) applies to acquisition debt incurred on or before December 15, 2017
- Taxpayers can refinance pre-December 15th acquisition debt and still use old limits
- Mortgage interest on home equity debt of any qualified residence is not allowed in 2018 through 2025
Cordasco & Company PC is a boutique CPA firm specializing in federal and state tax issues. We provide customized tax and accounting services specifically designed to help our clients capitalize on the rapidly changing tax and accounting environments.