Basic Rules
The general rule for deducting personal interest.
What is personal interest is not deductible.
An abbreviation for a home equity line of credit.
What is Home Equity Line of Credit (HELOC).
Define acquisition debt.
What is debt secured by and used to buy, build, or improve a qualified residence.
The major exception to the personal interest rule.
What is mortgage interest paid on qualified residence?
What type of loan is a mortgage.
What is secure debt.
Does the value of the home limit the interest deduction?
What is No.
Up to this amount of acquisition debt can mortgage interest be deducted.
What is 750,000
True or False: You can deduct mortgage interest on a boat if it has sleeping, cooking, and toilet facilities.
What is True — it qualifies as a second home!
What type of spending qualifies a loan to be treated as acquisition debt even if the home was already owned?
What is using the debt to improve the home (e.g., renovations, additions).
How many personal residences can qualify for acquisition debt interest deduction.
What is one principal residence and one other residence.
The year did the mortgage interest deduction limit drop from $1,000,000 to $750,000.
What is 2018, under the Tax Cuts and Jobs Act (TCJA).
If a condo is used as a rental property, does its mortgage interest go on Schedule A?
No, it uses a Schedule E as rental expense.
To count as a personal residence for mortgage interest, how many days per year must a vacation home be used personally if it is also rented out.
What is the greater of 14 days or 10% of the days rented.
Percentage of US homeowners who have no mortgage at all.
What is about 37%.
When refinancing a mortgage, what portion of the new loan continues to count as acquisition debt?
What is only the amount up to the remaining balance of the original acquisition debt.