Question

I refinanced my mortgage in 2019 to buy out my ex-husband. Can I still deduct 100% of my mortgage interest? The original mortgage originated in 2009.

Forum|Forum|5 years ago
June 13, 2020
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It depends, but more than likely the correct answer to your question is no.

Per Internal Revenue code §1041 if this action was incident to a divorce, then no. You can only claim/deduct interest equal to the original loan balance. There's more details you need to read that "may" affect my answer to your question. Generally, I don't reference non-IRS websites, but in this case its probably best to read the "plain English" interpretation on the Cornell website at https://www.law.cornell.edu/uscode/text/26/1041.