New ABA Staff Summary Highlights Mortgage Interest Deduction Issues

The American Bankers Association today published a new staff summary addressing the changes to the treatment of mortgage interest deductibility as a result of the new tax reform law. The document includes an overview of the changes, as well as the answers to several frequently asked questions that have arisen since the law was passed.

The tax law made two key changes regarding mortgage interest deductibility. First, it limited the amount of acquisition indebtedness that qualifies for the deductibility of interest to $750,000 for married taxpayers. It also removed the deduction for interest on home equity loans for tax years beginning in 2018. Both of these changes are scheduled to sunset in 2025. For more information, contact ABA’s John Kinsella.