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June 5, 2019
Question

California state form says I can write of leftover mortgage interest not covered in federal form how do I calculate the leftovers to write off

  • June 5, 2019
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how do I figure out the difference for the amount I can write off for my state taxes 

1 reply

Employee
June 5, 2019

From the California Franchise Board:

Federal law limited the mortgage interest deduction acquisition debt maximum from $1,000,000 ($500,000 for married filing separately) to $750,000 ($375,000 for married filing separately). California does not conform. If your deduction was limited under federal law, enter an adjustment on line 8, column C for the amount over the federal limit.

Federal law suspended the deduction on up to $100,000 ($50,000 for married filing separately) for interest on home equity indebtedness, unless the loan is used to buy, build, or substantially improve the taxpayer’s home that secures the loan. California does not conform. If your deduction was limited under the federal law, enter an adjustment on line 8, column C for the amount over the federal limit.

The instructions for this schedule (page 7):

https://www.ftb.ca.gov/forms/2018/18_540cains.pdf