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FAQs about Deducting Interest on Home Loans under the New Tax Law

Home Loans

Are you confused about the new tax law provisions that relate to itemized deductions for qualified residence interest? Here’s what you should know to avoid surprises when filing your federal tax return next year.

The Tax Cuts and Jobs Act (TCJA) changes the rules for deducting interest on home loans. Most homeowners will be unaffected because favorable grandfather provisions will keep the prior-law rules for home acquisition debt in place for them.

However, many homeowners will be adversely affected by the TCJA provision that generally disallows interest deductions for home equity loans for 2018 through 2025. This article explains what you need to know to avoid unpleasant surprises when you file your taxes for 2018. Read more