Tools for Tax Pros TheTaxBook™
Mortgage Deduction Limit Worksheet
Part I Qualified Loan Limit
1) Enter the average balance of all grandfathered debt ........................................................................................................... 1)
2) Enter the average balance of all home acquisition debt incurred prior to December 16, 2017
............................................ 2)
3) Enter $1,000,000 ($500,000 if married filing separately)
.......................................................................................................... 3)
4) Enter the larger of the amount on line 1 or the amount on line 3
......................................................................................... 4)
5) Add the amounts on lines 1 and 2. Enter the total here
........................................................................................................ 5)
6) Enter the smaller of the amount on line 4 or the amount on line 5
• If no home acquisition debt was incurred after December 15, 2017, line 6 is the qualified loan limit.
Enter this amount on line 11 and go to Part II, line 12.
• If home acquisition debt was incurred after December 15, 2017, go to line 7
................................................................... 6)
7) Enter the average balance of all home acquisition debt incurred after December 15, 2017
................................................ 7)
8) Enter $750,000 ($375,000 if Married Filing Separately)
........................................................................................................... 8)
9) Enter the larger of the amount on line 6 or the amount on line 8
......................................................................................... 9)
10) Add the amounts on lines 6 and 7. Enter the total here
........................................................................................................ 10)
11) Enter the smaller of line 9 or line 10. This is the qualified loan limit
................................................................................... 11)
Part II Deductible Home Mortgage Interest
12) Enter the total of the average balances of all mortgages on all qualified homes.
• If line 11 is less than line 12, go on to line 13.
• If line 11 is equal to or more than line 12, STOP here. All interest on all the mortgages included on line 12
is deductible as home mortgage interest on Schedule A (Form 1040)
............................................................................... 12)
13) Enter the total amount of interest paid
.................................................................................................................................. 13)
14)
Divide the amount on line 11 by the amount on line 12. Enter the result as a decimal amount (rounded to three places)
... 14) ×
15) Multiply the amount on line 13 by the decimal amount on line 14. Enter the result. This is the deductible home
mortgage interest. Enter this amount on Schedule A (Form 1040)
........................................................................................ 15)
16) Subtract the amount on line 15 from the amount on line 13. Enter the result. This is not home mortgage interest
............ 16)
