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The interest on a mortgage for the acquistion is deductible upto limits that probably has never limited anyone here. Is the interest on a mortgage used only for remodeling all restricted to the first $100,000?

If the money is used to remodel, then to the extent the remodeling was a capital improvement, it would be considered acquisition debt and not equity debt. The deductibility of mortgage interest on acquisition debt is capped at $1 million of principal. See IRS Pub. 936, Home Mortgage Interest Deduction, www.irs.gov/pub/irs-pdf/p936.pdf for more information including what expenses qualify as capital improvements and what expenses do not.

Ira


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