Figure 23-A. Is My Home Mortgage Interest Fully Deductible?
Summary: This flowchart is used to determine if your home mortgage interest is fully deductible.
(Instructions: Include balances of ALL mortgages secured by your main home and second home.)
Start
This is the beginning of the flowchart.
Decision (1)
Do you meet the conditions (see Footnote 1) to deduct home mortgage interest?
Footnote 1: You must itemize deductions on Schedule A (Form 1040) and be legally liable for the loan. The loan must be a secured
debt on a qualified home. See Home Mortgage Interest.
| IF Yes Continue To Decision (2) |
| IF No Continue To Process (a) |
Decision (2)
Were your total mortgage balances $100,000 or less (see Footnote 2) ($50,000 or less if married filing separately) at all
times during the year?
Footnote 2: If all mortgages on your main or second home exceed the home's fair market value, a lower limit may apply. See
Home equity debt limit under Home Equity Debt in Part II of Publication 936.
| IF Yes Continue To Process (b) |
| IF No Continue To Decision (3) |
Decision (3)
Were all of your home mortgages taken out on or before 10-13-87?
| IF Yes Continue To Process (b) |
| IF No Continue To Decision (4) |
Decision (4)
Were all of your home mortgages taken out after 10-13-87 used to buy, build, or improve the main home secured by that main
home mortgage or used to buy, build, or improve the second home secured by that second home mortgage, or both?
| IF Yes Continue To Decision (7) |
| IF No Continue To Decision (5) |
Decision (5)
Were your home equity debt balances $100,000 or less (see Footnote 2) ($50,000 or less if married filing separately) at all
times during the year?
Footnote 2: If all mortgages on your main or second home exceed the home's fair market value, a lower limit may apply. See
Home equity debt limit under Home Equity Debt in Part II of Publication 936.
| IF Yes Continue To Decision (6) |
| IF No Continue To Process (c) |
Decision (6)
Were your grandfathered debt plus home acquisition debt balances $1,000,000 or less (see Footnote 3) ($500,000 or less if
married filing separately) at all times during the year?
Footnote 3: Amounts over the $1,000,000 limit ($500,000 if married filing separately) qualify as home equity debt if they
are not more than the total home equity debt limit. See Publication 936 for more information about grandfathered debt, home
acquisition debt, and home equity debt.
| IF Yes Continue To Process (b) |
| IF No Continue To Process (c) |
Decision (7)
Were the mortgage balances $1,000,000 or less ($500,000 or less if married filing separately) at all times during the year?
| IF Yes Continue To Process (b) |
| IF No Continue To Decision (5) |
Process (a)
You cannot deduct the interest payments as home mortgage interest. (see Footnote 4)
Footnote 4: See Table 23-1 for where to deduct other types of interest payments.
Process (b)
Your home mortgage interest is fully deductible. You do not need Publication 936.
Process (c)
Go to Part II of Publication 936 to determine the limits on your deductible home mortgage interest.
End
This is the ending of the flowchart.
