Hi, my name is Erina DeMarco of Ernest P DeMarco and Associates located in North or New Jersey. I'm here to tell you a little bit about mortgage interest, the new tax law, and how it will affect you. Okay, so the new limit is now $750,000, rather than a million plus a $100,000 worth of equity loan. With the new law, you can have $750,000 in total, anything over that would not be deductible. For a perfect example, if you were to buy a home for $800,000 and you had a $500,000 loan on it, that would be 100% deductible. If you were then to take an equity loan on the house for $250,000, that brings the total loans up to $750,000. You would be able to deduct the entire amount of both loans as long as you use that $250,000 to improve the property. If you were to buy a second home and get a $250,000 loan on that second home property, you would be able to deduct it. However, if you use the equity out of your first property for $250,000 to buy a second home, it would not be deductible. So that loan has to be secured by the property, and that's it.
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1098 Mortgage Interest 2019-2023 due date Form: What You Should Know
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