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.

Try free mortgage calculator with taxes

Prashant Thakur Changed status to publish February 25, 2020