Greetings!  I'm sure this has been covered, but I've had no luck finding specifics.  My tax professional mentioned the new tax code includes a $10k cap on mortgage interest deductions for investment properties.  This has hit me pretty hard, I'd guess I have $20-25k in interest to deduct, and have historically.  This is in regards to Federal filing, but I'm in Iowa.

Are there any tax professionals that can confirm or deny that's the case with the new tax laws?  My research has not been able to find any specifics on this limitation.

Thanks!

Originally posted by @Rick Mapes :

Greetings!  I'm sure this has been covered, but I've had no luck finding specifics.  My tax professional mentioned the new tax code includes a $10k cap on mortgage interest deductions for investment properties.  This has hit me pretty hard, I'd guess I have $20-25k in interest to deduct, and have historically.  This is in regards to Federal filing, but I'm in Iowa.

Are there any tax professionals that can confirm or deny that's the case with the new tax laws?  My research has not been able to find any specifics on this limitation.

Thanks!

 That is not right. There is no 10k cap on the interest deduction. The 10k cap is for state and local taxes including real estate taxes. 

There is a new mortgage limitation on new loans of 750k. Meaning you can only deduct interest up the that amount. 

Old loans are not affected by the new 750k limit. So, if you loan was pre 2018, your deductions should not have changed.  

Thank you very much for confirming my research coming up blank.  Really appreciate you taking the time to respond!

Now let's get rid of the 10k state and local tax cap, it's a real killer for me.

Originally posted by @Rick Mapes :

Greetings!  I'm sure this has been covered, but I've had no luck finding specifics.  My tax professional mentioned the new tax code includes a $10k cap on mortgage interest deductions for investment properties.  This has hit me pretty hard, I'd guess I have $20-25k in interest to deduct, and have historically.  This is in regards to Federal filing, but I'm in Iowa.

Are there any tax professionals that can confirm or deny that's the case with the new tax laws?  My research has not been able to find any specifics on this limitation.

Thanks!

 I'm not a tax professional, but either a) a whole lot of my clients are engaged in tax fraud or b) your CPA is wrong or miscommunicating. 

For investment properties, it appears that my clients are all writing off ALL mortgage interest and ALL property taxes.

Primary residence, they are writing off interest on the first $750k and zero on property taxes (they are already at the $10k SALT cap).

Our President is a real estate mogul, lo and behold tax reform didn't hurt real estate investors at all. We joke in the office that none of us should buy a primary residence, we should buy rentals and lease to each other...

@Chris Mason

Great idea on the rental.  Only concern would be 121 exemptions and financing requirements for investment property.

Mark