The following excerpts are from today’s Banker & Tradesman:
Homeowners can deduct interest on up to $1.1 million in mortgage debt, $100,000 more than the previous limit of $1 million, according to a recent change by the Internal Revenue Service.
The IRS ruling, announced last week, brushed aside a Tax Court ruling that would have limited those deductions.
Taxpayers are allowed to deduct interest on up to $1 million in debt to purchase or improve a residence. In addition, taxpayers may deduct interest on up to $100,000 of home equity indebtedness, provided that this debt is fully secured by the residence.
Read the entire article.