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This tax worksheet computes the taxpayer’s qualified mortgage loan limit and the deductible home mortgage interest.
Example
Your clients want to buy a house with a mortgage of $1,200,000. They want to know the qualified loan limit and how much of the interest paid is deductible home mortgage interest.
| Field | Input |
|---|---|
| Average balance of all home acquisition debt | $1,200,000 |
| Acquisition debt limit (enter $1,000,000 or $500,000 MFS) | $1,000,000 |
| Fair market value minus acquisition and grandfathered debt | $10,000 |
| Total interest paid | $50,000 |
In this example, $1,010,000 is the qualified loan limit and $42,083.33 is deductible home mortgage interest.
Notes
- The amount in the Fair market value minus acquisition and grandfathered debt field is as of the date the last debt was secured.
- The format of this calculator follows a worksheet from IRS Publication 936.
For further assistance on this topic, click the Tax Flowcharts item group 
button to view the Mortgage Loan – Deductible Interest flowchart.
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