Conversion from Rental to Personal Use Home-Mortgage Deduction - Spidell

Conversion from Rental to Personal Use Home-Mortgage Deduction

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Message Board Conversion from Rental to Personal Use Home-Mortgage Deduction

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 1 week, 6 days ago.

  • Author
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  • #179320
    Luis Bravo
    Participant

    Taxpayer purchased a home in 2016 and was a rental from 2016 until May 2018

    In October 2017 the home mortgage was refinanced prior to the TCJA rules and the loan balance is over $800,000

    Now that the taxpayer has begun living in the home as of June 2018, will the $800,000 mortgage require pro-ration per the $750,000 limit, or since it was refinanced prior to TCJA it is considered grandfathered debt and subject to the old deductions?

  • #179337
    Lynn Freer
    Participant

    I believe he would be granfathered in because the loan was taken out in 2017.