Cap on Mortgage Interest Deduction with new Tax Code ?

[Rick Mapes]

Greetings!  I'm sure this has been covered, but I've had no luck finding specifics.  My tax professional mentioned the new tax code includes a $10k cap on mortgage interest deductions for investment properties.  This has hit me pretty hard, I'd guess I have $20-25k in interest to deduct, and have historically.  This is in regards to Federal filing, but I'm in Iowa.

Are there any tax professionals that can confirm or deny that's the case with the new tax laws?  My research has not been able to find any specifics on this limitation.

Thanks!

[Ashish Acharya]

Originally posted by @Rick Mapes:

Greetings!  I'm sure this has been covered, but I've had no luck finding specifics.  My tax professional mentioned the new tax code includes a $10k cap on mortgage interest deductions for investment properties.  This has hit me pretty hard, I'd guess I have $20-25k in interest to deduct, and have historically.  This is in regards to Federal filing, but I'm in Iowa.

Are there any tax professionals that can confirm or deny that's the case with the new tax laws?  My research has not been able to find any specifics on this limitation.

Thanks!

 That is not right. There is no 10k cap on the interest deduction. The 10k cap is for state and local taxes including real estate taxes. 

There is a new mortgage limitation on new loans of 750k. Meaning you can only deduct interest up the that amount. 

Old loans are not affected by the new 750k limit. So, if you loan was pre 2018, your deductions should not have changed.