Well if most accountants are like me we got lazy when it came to asking about mortgage debt and home equity loan distributions. For a long time there have been no worries on mortgage interest for most people and you got to write off interest on up to $100,000 in home equity loans for any reason what so ever. Well in 2018 the rules change.
We are again limited to interest only being deductible for buying or improving your principal residence and a second home. The limit changes to a maximum of $1 million to a maximum of $750,000. So every re-finance that had cash come out, every equity line of credit draw will now have to be reviewed for purpose and use.
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