From an IBD article:
Homebuilders were under pressure Thursday because of some details in the Republican tax plan.
The plan would cap the mortgage interest deduction at $500,000, down from $1 million.
The high-end homebuilder stocks took the hardest hits. For example, Toll Bros. (TOL) stabbed 6% lower. MDC Holdings (MDC) dropped 12%. Both closed low in the day’s range.
Builders in the mid- to low-end of the housing market — whose customers would not be affected as much by the lower deduction — did better. LGI Homes (LGIH) lost 2% and closed moderately off the day’s low, and D.R. Horton (DHI) slipped 0.2% and closed high in the day’s range.
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The plan would cap the mortgage interest deduction at $500,000, down from $1 million.
My accountant recently told me that maximum is currently $1.1M.
Is that per loan? Or per year?
My accountant recently told me that maximum is currently $1.1M.
Ah man, I have been missing out on that last $100K deduction.
this could be old.
http://www.bankrate.com/calculators/mortgages/loan-tax-deduc…
Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible.
For places like California and NY City, the could really matter to “normal” people. Ok, so if you can afford a $1M mortgage, I guess you are not that “normal”.