If you’ve already got a mortgage, things won’t change. You can still deduct the interest you pay on mortgages up to $1 million.
But if you’re planning to get a new mortgage, you may not be able to deduct as much. The latest tax plan voted on by House Republicans would cap the mortgage interest deduction on new loans at $750,000.
That could deliver a blow to some Californians. Since the start of this year, about 12.5% of all new mortgages in Los Angeles County were more than $750,000.
So, how much would you be able to deduct if you got a new loan under this proposed law?