3 ms·

There's also a deduction phase-out at high incomes. (450K iirc)

• JumpCrisscross 10y ago
  $1MM if single, $500k if married and filing separately. EDIT: see comment below. One can deduct the interest on mortgages up to $1MM and $500k, but there is a cap on itemised deductions (mortgage interest deductions are this kind of deduction) around $450k. http://www.bankrate.com/calculators/mortgages/loan-tax-deduction-calculator.aspx http://www.bankrate.com/calculators/mortgages/loan-tax-deduc...
  • jpmattia 10y ago
    There are two different things: From your link: Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). So mortgage interest for loans beyond $1M are not deductible at all. Then there is the deduction phase-out > You are subject to the limit on certain itemized deductions if your adjusted gross income (AGI) is more than $309,900 if married filing jointly or qualifying widow(er), $284,050 if head of household, $258,250 if single, or $154,950 if married filing separately. Your AGI is the amount on Form 1040, line 38. https://www.irs.gov/publications/p17/ch29.html https://www.irs.gov/publications/p17/ch29.html
• jonknee 10y ago
  Though somewhat ironically, Zuck probably isn't high income because his Facebook salary is $1 and the vast majority of his wealth is in FB shares that pay no dividend.
  • jpmattia 10y ago
    Low income reduces the value of the deduction. I'm sure there are a gaggle of cpa's optimizing his 1040.