Final answer:
Taxpayers with high AGI are not allowed to deduct interest on qualifying home equity indebtedness due to the Tax Cuts and Jobs Act of 2017. This restriction applies to tax years 2018 through 2025.
Step-by-step explanation:
Taxpayers with high AGI (Adjusted Gross Income) are indeed not allowed to deduct interest on qualifying home equity indebtedness. This restriction was implemented under the Tax Cuts and Jobs Act (TCJA) of 2017, which limited the deductibility of home mortgage interest.
Prior to the TCJA, taxpayers were allowed to deduct interest on up to $100,000 of home equity indebtedness, regardless of their AGI. However, starting from tax year 2018 through tax year 2025, taxpayers with high AGI (over $109,000 for individuals and $218,000 for married couples filing jointly) are no longer eligible for the deduction.
It's important to note that the deduction for home mortgage interest on up to $750,000 of acquisition indebtedness is still available, as long as certain criteria are met.