Publication 936 - Home Mortgage Interest Deduction

Figure A. Is My Home Mortgage Interest Fully Deductible?

(Instructions: Include balances of ALL mortgages secured by your main home and second home.)

Start Here:

Do you meet the conditions

to deduct home

You cannot deduct the interest payments as home

mortgage interest?

mortgage interest.

Yes

Were your total mortgage balances $100,000 or

Your home mortgage interest is fully deductible. You

less

($50,000 or less if married filing separately) at

do not need to read Part II of this publication.

all times during the year?

Go to Part II of this publication to determine the

Were all of your home mortgages taken out on or

Yes

before October 13, 1987?

limits on your deductible home mortgage interest.

Were all of your home mortgages taken out after

Were your grandfathered debt plus home acquisition

October 13, 1987 used to buy, build, or improve the

debt balances $1,000,000 or less

($500,000 or less

Yes

main home secured by that main home mortgage or

if married filing separately) at all times during the

used to buy, build, or improve the second home

year?

secured by that second home mortgage, or both?

Yes

Were the mortgage balances $1,000,000 or less

Were your home equity debt balances $100,000 or

($500,000 or less if married filing separately) at all

less

($50,000 or less if married filing separately) at

times during the year?

all times during the year?

Yes

You must itemize deductions on Schedule A (Form 1040). The loan must be a secured debt on a qualified home. See Part I, Home Mortgage Interest.

If all mortgages on your main or second home exceed the home’s fair market value, a lower limit may apply. See Home equity debt limit under Home Equity

Debt in Part II.

Amounts over the $1,000,000 limit ($500,000 if married filing separately) may qualify as home equity debt if they are not more than the total home equity

debt limit. See Part II of this publication for more information about grandfathered debt, home acquisition debt, and home equity debt.

See Table 2 in Part II of this publication for where to deduct other types of interest payments.

to be a qualified home. You must use this home

treat as a second home during the year in the

can choose a new second home as of the

following situations.

day you sell the old one or begin using it

more than 14 days or more than 10% of the

as your main home.

number of days during the year that the home is

•

If you get a new home during the year,