Taxpayers can deduct qualified mortgage interest on Schedule A, Itemized Deductions, for interest paid on up to $1 million of acquisition indebtedness plus up to $100,000 of home equity indebtedness.
Generally, a Qualified Residence is the taxpayer’s primary residence plus one other residence.
Acquisition indebtedness is a mortgage taken after October 13, 1987, that was used to buy, build or substantially improve a qualified residence. Additionally, the debt must be secured by the qualified residence.
See IRS Publication 936, Home Mortgage Interest Deduction,
Rev. Rul. 2010-25
