Yes. The mortgage interest deduction for 2018, as we know it pending actual instructional guidance, is as follows: Home mortgage interest is deductible for outstanding mortgage balances of up to $750,000. So if your outstanding mortgage balance is $750,000 or less, all the interest is deductible. If more than that amount, then only the interest paid on the first $750,000 is deductible.

Question

With proposed changes for re-finances on a house under $750,000 and a cash-out option, will I be able to deduct mortgage interest on my 2018 return for the entire loan?

Forum|Forum|7 years ago
June 6, 2019
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DianeW777

Yes. The mortgage interest deduction for 2018, as we know it pending actual instructional guidance, is as follows:

Home mortgage interest is deductible for outstanding mortgage balances of up to $750,000. So if your outstanding mortgage balance is $750,000 or less, all the interest is deductible. If more than that amount, then only the interest paid on the first $750,000 is deductible.

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maclukerAuthor

What if I have a cash-out option on the mortgage? Will that be tax deductible? I was reading an article in WSJ that said if any portion is used for cash out, the then whole load will not be deductible. Is that true or being considered for 2018?