LSTAX
Level 4
10-07-2021
06:16 PM
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Thanks everyone - I ended up using the old loan principal amount 900K.
Grandfathered debt
In the case of acquisition indebtedness incurred on or before December 15, 2017, the $1 million
limitation ($500,000 for married taxpayers filing separately) is grandfathered in. Grandfathered debt
includes refinanced grandfather debt, but only to the extent of the balance of the debt prior to
refinancing. (IRC §163(h)(3)(F)(iii)(I))
Equity indebtedness is not grandfathered
In the case of acquisition indebtedness incurred on or before December 15, 2017, the $1 million
limitation ($500,000 for married taxpayers filing separately) is grandfathered in. Grandfathered debt
includes refinanced grandfather debt, but only to the extent of the balance of the debt prior to
refinancing. (IRC §163(h)(3)(F)(iii)(I))
Equity indebtedness is not grandfathered
I played with Lacerte SC 25 excess mtg and the results were always strange, but the worksheet always showed #11 Qualified Loan Limit the beginning balance of the old loan that was refinanced.
