Contact UsWe are looking at purchasing our dream home but it is 3 million dollars. What is the amount of interest we can deduct on the mortgage of our home?
TaxConnections Members... Answer This Question
Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
Devon McCarthy FCCA, EA
Leave a Comment
519 weeks ago
The home acquisition debt limit for mortgage interest deduction for 2013 is $1 Million or $500,000 if your filing status is Married Filing Separately. Generally only the interest on mortgage debt falling within these limits is deductible.
If all mortgages on your main or second home exceed the home's fair market value, a lower limit may apply.
Other restrictions apply including but not limited to the following:
- You must itemize deductions
- The mortgage must be secured by your main or second home
- You must have ownership interest in the home
Depending on your circumstances there may also be limitations on your overall itemized deductions.