The Tax Cuts and Jobs Act (TCJA) restricted the interest that homeowners could deduct from taxes.\u00a0<\/p>

Instead of single or married filing jointly taxpayers deducting mortgage interest on the first $1 million and $500,000 for married filing their mortgage separately, they can now only deduct interest on the first $750,000 and $375,000 for married filing separately.<\/p>

Some homeowners if they meet certain requirements can deduct the entirety of their mortgage interest paid.\u00a0<\/p>

The amount allowed for the deduction depends upon the date of the mortgage, the amount of the mortgage, and the purpose for which the proceeds of that mortgage are used.<\/p>

Till the time homeowner\u2019s mortgage matches the following criteria throughout the year, all mortgage interest can be deducted.\u00a0<\/p>

Mortgages taken out by a date set by the Internal Revenue Service (IRS) are called Grandfathered debt, which qualifies for the deduction.<\/p>

Mortgages issued before Oct. 13, 1987, do not have any limits, meaning that taxpayers can deduct any mortgage interest amount from taxes.\u00a0<\/p>

For mortgages that a homeowner or their spouse took on after the \u201cgrandfathered debt\u201d date\u00a0as home equity debt\u00a0totaling no more than $100,000 or if filing separately and married $50,000 and under throughout the tax year\u2013the mortgage interest can qualify for the deduction if the debt also did not total more than the fair market value of the home after certain adjustments.<\/p>

If the homeowner\u2019s mortgage is a secured debt, where they have signed a deed of trust, mortgage, or a land contract that makes their ownership in qualified home security for payment of the debt and other stipulations only then can the mortgage interest deduction be taken?<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t