Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Important Changes This Year

Standard and Itemized Deductions

Qualified Residence Interest

The deduction for home equity debt is disallowed as a mortgage interest deduction unless the home equity debt was used to build, buy, or improve the taxpayer's qualified residence.

Effective for tax years beginning after December 31, 2017 and before January 1, 2026, the total amount allowed as a deduction for home mortgage interest is limited based on home acquisition debt of up to $750,000 ($375,000 if Married Filing Separately).

In the case of debt incurred before December 15, 2017, an individual may deduct mortgage interest on acquisition debt on a qualified residence of no more than $1,000,000 ($500,000 if Married Filing Separately). A taxpayer who entered into a binding written contract before December 15, 2017 to close on a purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, shall be considered to have incurred acquisition indebtedness prior to December 15, 2017.