Sec. 1302. Mortgage interest

534 words·~2 min read·/bill/115/hr/1/ih/section-1302

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Section 163(h)(3) is amended to read as follows: For purposes of this subsection— The term qualified residence interest means any interest which is paid or accrued during the taxable year on indebtedness which— is incurred in acquiring, constructing, or substantially improving any qualified residence (determined as of the time the interest is accrued) of the taxpayer, and is secured by such residence. Such term also includes interest on any indebtedness secured by such residence resulting from the refinancing of indebtedness meeting the requirements of the preceding sentence (or this sentence); but only to the extent the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness.

The aggregate amount of indebtedness taken into account under subparagraph

(A)for any period shall not exceed $500,000 (half of such amount in the case of a married individual filing a separate return). In the case of any pre-November 2, 2017, indebtedness, this paragraph shall apply as in effect immediately before the enactment of the Tax Cuts and Jobs Act . For purposes of this subparagraph, the term pre-November 2, 2017, indebtedness means— any principal residence acquisition indebtedness which was incurred on or before November 2, 2017, or any principal residence acquisition indebtedness which is incurred after November 2, 2017, to refinance indebtedness described in clause

(i)(or refinanced indebtedness meeting the requirements of this clause) to the extent (immediately after the refinancing) the principal amount of the indebtedness resulting from the refinancing does not exceed the principal amount of the refinanced indebtedness (immediately before the refinancing). clause (ii)(II) shall not apply to any indebtedness after— the expiration of the term of the original indebtedness, or if the principal of such original indebtedness is not amortized over its term, the expiration of the term of the 1st refinancing of such indebtedness (or if earlier, the date which is 30 years after the date of such 1st refinancing). In the case of a taxpayer who enters into a written binding contract before November 2, 2017, to close on the purchase of a principal residence before January 1, 2018, and who purchases such residence before April 1, 2018, subparagraphs

(A)and

(B)shall be applied by substituting April 1, 2018 for November 2, 2017 . . Section 108(h)(2) is by striking for and inserting $1,000,000 ($500,000 in clause

(ii)thereof for $500,000 ($250,000 in paragraph (2)(A), and $1,000,000 for $500,000 in paragraph (2)(B), thereof Section 163(h) is amended— by striking subparagraphs

(E)and

(F)in paragraph (4), and by striking paragraph (5). Section 163(h)(4)(A)(i) is amended to read as follows: The term qualified residence means the principal residence (within the meaning of section 121) of the taxpayer. Rules similar to the rules of paragraph (3)(C) shall apply for purposes of the preceding sentence. . The amendments made by this section shall apply to interest paid or accrued in taxable years beginning after December 31, 2017, with respect to indebtedness incurred before, on, or after such date. For application of the amendments made by this section to grandfathered indebtedness, see paragraph (3)(C), and the second sentence of paragraph (4)(A)(i), of section 163(h) of the Internal Revenue Code of 1986, as amended by this section.