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@LSTAX wrote:
but one of the examples I found states this which I thought applied since the extra funds were used on a remodel:
A taxpayer can retain the grandfathered $1 million interest limitation, even if they refinance after 12/15/17. However, the refinanced debt can't exceed the mortgage balance at the time of refinancing, unless the additional amount can be considered acquisition debt and the total indebtedness falls below $1 million.
As far as I can tell, that example you Googled is wrong.
It takes about 50 times to understand what this gibbish is saying, but here is the Code and my interpretation under it"
Subparagraph (B)(ii) shall be applied by substituting “$750,000 ($375,000” for “$1,000,000 ($500,000”.
Subclause (II) shall not apply to any indebtedness incurred on or before December 15, 2017, and, in applying such subclause to any indebtedness incurred after such date, the limitation under such subclause shall be reduced (but not below zero) by the amount of any indebtedness incurred on or before December 15, 2017, which is treated as acquisition indebtedness for purposes of this subsection for the taxable year.
My translation of the highlighted section: For the limit for debt after 2017, use $750,000 and subtract the qualified grandfathered amount.
