SUMMARY OF DEDUCTIBLE & NONDEDUCTIBLE INTEREST
01.Core Concepts
EXPENSES AS ITEMIZED DEDUCTIONS Nondeductible Deductible Personal Interest (including credit cards, car,* bank loans, etc.) Qualified Residence Interest (Limit 2 houses and $1,000,000 pre-12/16/17 debt or $750,000 post-12/15/17 – 2025 debt) ($750,000 made permanent after 2025 by OBBBA) Interest used to buy tax-free municipal bonds (regular tax) Home Equity Line of Credit up to $100,000 limit (before 2018). No deduction for home equity interest from 2018-2025 (unless it qualifies as acquisition indebtedness). Made permanent after 2025 by OBBBA. Home equity interest for tax years 2018-2025. Made permanent after 2025 by OBBBA. Investment Interest Expense (to extent of investment interest income) *OBBBA created a new deduction (not an itemized deduction) for certain car loan interest.