After the Tax Cuts & Jobs Act passed in 2017, the interest on your mortgage, home equity line of credit (HELOC) or mortgage refinance are allowed but with some restrictions. Now, deduction of mortgage interest is allowed only up to $750,000 worth of qualified loans for married couples filing jointly . Single filers can only claim interest on loan worth $375,000 for any home purchased after Dec. 15, 2017.
For the debt before Dec. 15, 2017, married couples can deduct qualified loan interest paid or payable on loan upto $1 million whereas single or those filing separately can claim interest on loan worth $500,000 .
Another condition is that only those loans are qualified for tax deduction that are used to purchase, build or substantially renovate your home.
