The final Bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken after Dec 14th 2017. Current loans of up to $1 million are grandfathered and are now subject to the new $750,000 cap. Neither is indexed for inflation.
- Homeowners may refinance mortgage debts existing on Dec 14th 2017, up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced.
- The final bill repeals the deduction for interest paid on home equity debt through Dec 31st, 2015. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially inporve the residence.
- Interest remains deductible on second homes but subject to the $1 million/$750,000 limits.
For more details read blog.alta.org/2017/12/what-tax-reform-means-for-alta-members.html