Mortgage interest is tax-deductible in year 2019 and 2020. Here are certain conditions that must be met in order to claim mortgage interest as a deduction
- The maximum principal amount on which mortgage interest is deductible is $750,000 .However, the maximum amount of $1 million is ($500,000 if married filing separately) is possible in case you are deducting mortgage interest from indebtedness incurred before December 16, 2017
- The mortgage is backed by either a primary residence, second/vacation home, or by home equity debt that was used to substantially improve one of these residences.
- You can not deduct the interest paid on investment property mortgages.
- Home equity debt is eligible only if was taken for making improvements to your home.
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Prashant Thakur Changed status to publish February 25, 2020
