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I have a client who has a mortgage for $800,000 that he got…

I have a client who...
I have a client who has a mortgage for $800,000 that he got several years ago. He would like to refinance. Under the new tax laws, if he refinances, is his $800,000 mortgage still grandfathered in? Or is he then limited on the amount of mortgage interest that he can deduct to the new $750,000 level?
Thanks.
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Answered in 18 minutes by:
3/18/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,273
Experience: Adjunct Professor
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Hey! So, yes it will be. But he cannot take additional money out above the $800,000 and anything he refinances needs to be acquisition debt. If the additional proceeds are used for non-acquisition debt purposes, then it will not be deductible.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,273
Experience: Adjunct Professor
Verified
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