Richey May’s Inside the One Big Beautiful Bill Act video series is designed to help mortgage lenders and other industry-affiliated businesses understand what this sweeping legislation means in practice, not just in theory. Hosted by Kenny Burch, Director, Mortgage Banking Tax, the series features focused conversations with experts from Richey May’s Mortgage Banking Tax team, each examining a specific provision of the Act and its implications.
In this episode, Kenny is joined by Jenny Trask, Tax Director, to review updates to the mortgage interest deduction under the One Big Beautiful Bill Act. While this provision applies at the individual level, it remains particularly relevant for lenders, high-income taxpayers, and anyone navigating itemized deduction planning in the current legislative environment.
Key Takeaways from the Episode
- The $750,000 acquisition debt limit is now permanent: Prior sunset provisions would have increased the deductible loan limit in 2026, but the One Big Beautiful Bill Act locks in the lower threshold.
- Mortgage insurance premiums remain included: Interest and qualifying mortgage insurance premiums tied to acquisition debt are subject to the same acquisition debt limitations. Mortgage insurance premium deductions are also subject to certain AGI phaseouts.
- Amounts above the limit are permanently nondeductible: Interest attributable to acquisition debt exceeding the threshold cannot be deducted now or carried forward to future years.
- Form 1098 reporting remains consistent with system updates ahead: While reporting stays largely the same, changes to the submission process are coming, requiring deeper attention to compliance processes.
- Planning around itemized deductions still matters: The permanence of the limitation reinforces the importance of understanding your overall itemized deduction strategy.
Taken together, these updates remove uncertainty around future limits while reinforcing the need for proactive personal tax planning.
Watch the full episode below to hear Kenny and Jenny walk through how the mortgage interest deduction works under the One Big Beautiful Bill Act and what individual taxpayers should keep in mind.
Continue the Conversation
This episode is part of the Inside the One Big Beautiful Bill Act series, which explores additional provisions shaping the mortgage banking tax landscape. Visit the series page to watch other episodes and stay current as new guidance continues to emerge.
If you have questions about the mortgage interest deduction or any aspect of the One Big Beautiful Bill Act that may impact your organization, the Richey May Mortgage Banking Tax team is available to help.
