Mortgage interest deduction IRS change this year

Forum|Forum|6 years ago
February 21, 2020
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I have a home mortgage loan taken in 2009. Took the standard interest deduction each year until this year when the IRS update says we must report any part of the loan that was used for something besides the property that secures the loan. In my case, some of the money was used for tuition. If I understand correctly, I will have to deduct that amount this year which will lower the amount of my loan interest and the corresponding deduction. My question, is this a one time thing to be reported? That is, what happens next year? Thanks.

Not A Product Question

NCPERSON1

if you take the standard deduction, then the whole issue is moot to you.....

did you do a cash out refi at some part along the way?

if you did a cash out refi and you itemize, then there is an issue. If that is you case, please explain what a) the mortgage balance was when you did the cash out refi (the prior mortgage), b) what the cash out balance was after the refi, what you did with the money (a-b) and c) what the mortgage balance is now. What we need to understand is now much of the cash you took out went to improve the house vs. the rest.