Homeowners who itemize deductions can deduct mortgage interest. What is the current limit on the mortgage principal eligible for this deduction?

The Tax Cuts and Jobs Act of 2017 reduced the mortgage interest deduction limit from $1,000,000 to $750,000 in acquisition debt for new loans taken out after December 15, 2017. Loans originated before that date are grandfathered under the $1 million cap. Interest on home equity loans is only deductible if the funds were used to buy, build, or substantially improve the property. For most taxpayers, the increased standard deduction introduced by the same legislation makes itemizing and claiming the mortgage interest deduction less beneficial than it was before 2018.