Question

One change brought by TCJA is that only the interest on the first $_______of mortgage debt is deductible.

a) 500,000
b) 750,000
c) 1,000,000
d) 1,500,000

Answer 1

The Tax Cuts and Jobs Act (TCJA) changed the deductible amount for mortgage interest. The interest on the first $750,000 of mortgage debt is now deductible.

Step-by-step explanation:

The correct answer is b) 750,000. One change brought by the Tax Cuts and Jobs Act (TCJA) is that only the interest on the first $750,000 of mortgage debt is deductible. This applies to new mortgages taken out after December 15, 2017. Prior to the TCJA, the limit was $1 million.