Deductible Home Mortgage Interest Worksheet

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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 Tax worksheets item group button button to view the Mortgage Loan – Deductible Interest flowchart.

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