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    Tax Deductions for Homeowners: How the New Tax Law Affects Mortgage Interest

    Beginning in 2018, the limits on qualified residence loans were lowered. This year, couples filing jointly may only deduct interest on up to $750,000 of qualified home loans, down from $1 million in 2017. For married taxpayers filing separate returns, the cap is $375,000; it was previously $500,000. These limits include any combination of qualified loans, such as mortgages, home equity loans and HELOCs. For example, if you have a first mortgage that is $300,000 and a home equity loan that’s $200,000, all the interest paid on both of those loans may be deductible since you didn’t exceed the $750,000 cap. If you took out a mortgage and or home equity loan/HELOC on or before December 15, 2017, you can still deduct the interest on up to $1 million in loans.
    Remember to keep records of your spending on home improvement projects in case you get audited.
    More details can be found:

     

     

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