Tax Cut and Jobs Act (TCJA) | Mortgage Interest Deduction | Lexington, KY Tax Attorney

Lower Cap on Mortgage Interest Deduction

The Tax Cuts and Jobs Act (TCJA) is a sweeping change to the U.S. tax code. It eliminates or restricts many itemized deductions beginning in 2018.

Currently, if you take out a new mortgage on a first or second home, you can deduct the interest on up to $1 million of debt. Under the new TCJA, the cap is at $750,000 of debt. (If you already have a mortgage, you would not be affected.) The new law also eliminates the deduction for interest on home equity loans, which is currently allowed on loans up to $100,000.

For more information about the TCJA’s provisions, visit our main informational page here. For help with your tax questions or concerns, call Gayheart and Campbell, PLLC at 859-276-6193 or request a consultation here.