Mortgage Interest Limit

Forum|Forum|3 years ago
April 12, 2022
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Original mortgage was acquired in July 2017. Refinanced in 2021 for a lower interest rate, no money was taken out to spend on anything else.

The original Mortgage was $1.1 million, currently the mortgage is now $1.050 million. Does the $750k mortgage interest limit apply to us or since the original mortgage was in July 2017 do we get the $1 million grandfathered amount?

RaifH

The $1 million limit applies, meaning that almost all your interest should be deductible. To get TurboTax to apply the correct limit, make sure you answer Yes to the question Do either of these apply to this loan?

You will see that question after you select Done when you are taken back to the Home loan deduction summary screen. You will then answer the balance as of January 1, 2022 so that TurboTax can determine the average balance of the first and last month.