The Mortgage Interest Deduction allows homeowners to reduce their taxable income by the amount of interest paid on a qualified residence loan.
The law regarding the Mortgage Interest Deduction has been revised by the Tax Cuts and Jobs Act, and the changes will take effect beginning with returns filed in 2019.
What mortgage interest is deductible 2019?
Specifically, homeowners are allowed to deduct the interest they pay on as much as $750,000 of qualified personal residence debt on a first and/or second home. This has been reduced from the former limit of $1 million in mortgage principal plus up to $100,000 in home equity debt.
Can mortgage interest be deducted in 2020?
The 2020 mortgage interest deduction
Taxpayers can deduct mortgage interest on up to $750,000 in principal. Home equity debt that was incurred for any other reason than making improvements to your home is not eligible for the deduction.
Are property taxes deductible in 2019?
The Tax Cuts and Jobs Act limits the amount of property taxes you can deduct. For 2019, the IRS says you can deduct up to $10,000 ($5,000 if you’re married filing separately) of the following costs: Property taxes, including real estate taxes and personal property taxes.
Can you still write off mortgage interest?
Homeowners who bought houses after Dec. 15, 2017, can deduct interest on the first $750,000 of the mortgage. Claiming the mortgage interest deduction requires itemizing on your tax return. The mortgage interest deduction is alive and well in 2020.