Question

How come there is only maximum of $1,0000 for property tax and mortgage interest?

Forum|Forum|5 years ago
June 24, 2020
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Employee

The deduction for state and local taxes (including income tax, sales tax, personal property tax, and real property tax) was capped by Congress in the 2018 tax reform at $10,000.

There is no cap on the mortgage interest deduction, but you can only deduct interest on up to $750,000 of acquisition debt (used to buy, build or improve your home) and you can’t deduct equity debt.

A

Anonymous

a clarification if you have home acquisition debt from prior to 12/15/17 and after 10/14/1987 the limit is $1,000,000. 1/2 these limits if married filing separate. home equity debt incurred after 10/13/1987 used to buy, build, or substantially improve the taxpayer's main or second home is still deductible subject to the mortgage $ limits. like a typical mortgage, HED must be secured by the home.

IR-2018-32