QUALIFIED RESIDENCE INTEREST (3 OF 3)
01.Core Concepts
• Home Equity Indebtedness: Before 2018, interest was deductible on up to: • $100,000 maximum principal amount $50,000 for married filing separately • Cannot exceed FMV of home less acquisition indebtedness • For tax years 2018-2025 (under TCJA), no interest on home equity indebtedness may be deducted. Made permanent by OBBBA. • Interest on home equity loan that qualifies as acquisition indebtedness is deductible. Made permanent by OBBBA.