In case you refinance your mortgage of 1 million in 2020, can you still deduct the mortgage interest on 1 million or you will be limited to $750,000
Example: I got my mortgage of 1 million in 2014, as per IRS i still can deduct interest on that mortgage even the law limits it to $750,000 in 2018.
Now i would like to refinance my mortgage at lower interest rate. Do i still get the 1 million limit of interest deduction after refinancing ?
Appreciate your feedback
I did some research on this (and too lazy to pull up the tax code), re-finances are grandfathered in assuming you don’t pull cash out. so if you got your > $750k mortgage before the new tax laws, refinances of the original mortgage is still treated under the old tax law for mortgage interest deduction cap limits.
Thanks a lot !!
How about rolling the closing costs in the new mortgage. For Example i roll $20,000 closing costs when refinancing into my new mortgage.