Mortgage Interest Deduction

Mortgage Interest Deduction

A cap on eligible deductions mean fewer will take this popular write off.

The new law reduces the amount of indebtedness on which taxpayers can deduct mortgage interest. It used to be that one could deduct the interest on mortgage loans up to $1 million, plus the additional interest on up to $100,000 of any home equity line of credit (HELOC). The new law reduces the applicable mortgage loan amount to a maximum of $750,000 borrowed for the purpose of original purchase financing or home improvements. Interest paid on a HELOC used to buy, build or substantially improve the taxpayer’s home is typically deductible.

This new limit applies to new loans made.  Loans originated prior to the tax law coming into effect are unaffected.

There are exceptions, such as the interest deductibility on the refinancing of existing loans will still be allowed up to $1 million. Additionally the interest on any refinanced HELOC is also allowed, if used for housing-related purposes (but only if the combined total of it and the mortgage do not exceed $750,000). Again, this could affect certain future decisions about financing your residence. Ultimately, though, the limitation of many other deductions plus the availability of the new, higher standard deduction might mean that far fewer taxpayers are able to deduct mortgage interest; and the persistent low (but rising) interest rate environment is also a consideration for new home buyers.

Click below to return to the full 2018 Tax Review:

Articles and Commentary

Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.


Video Presentations

All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.

Recent Posts

Mar 18, 2024
CNBC Halftime: Portfolio Moves | March 14, 2024
Sand Hill News
Sand Hill News
CNBC Halftime: Portfolio Moves | March 14, 2024

Sand Hill's Chief Investment Officer, Brenda Vingiello, CFA, joins Jenny Harrington on “Halftime Report” to go over their most recent portfolio moves. Brenda's commentary begins

read more
Mar 6, 2024
CNBC Squawk Box: Market Trends | March 6, 2024
Sand Hill News
Sand Hill News
CNBC Squawk Box:  Market Trends | March 6, 2024

Brenda Vingiello, Sand Hill Global Advisors CIO, joined ‘Squawk Box’ to discuss the latest market trends ahead of the opening bell. This content was produced

read more
Feb 13, 2024
CNBC Squawk Box: CPI Report | February 13, 2024
Sand Hill News
Sand Hill News
CNBC Squawk Box:  CPI Report | February 13, 2024

Sand Hill Global Advisors' CIO, Brenda Vingiello, joined Squawk Box to discuss her view on the latest CPI report. This content was produced and provided

read more

Stay up to date, receive email updates from Sand Hill directly to your inbox!