IRS Rules Homeowners Can Deduct Interest on Mortgages up to $1.1 Million

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Via the Journal of Accountancy

Under Internal Revenue Code section 163(h), interest is deductible on mortgages up to $1 million, and additionally, taxpayers can deduct interest on home equity indebtedness of $100,000.  In a revenue ruling released Thursday, the IRS ruled that mortgages of up to $1.1 million can satisfy this rule, whereas the previous requirement was that the home-equity indebtedness be part of a separate loan, not used to acquire the home.

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