New tax deduction rules for 1 million-plus mortgages

In a recent announcement, the Internal Revenue Service (IRS) has concluded that a taxpayer with 1 million-plus mortgage can deduct interest on the first $1.1 million of a home mortgage. It is estimated that around 137,670 taxpayers would be benefited from this new rule. Taxpayers can save up to $3,000 a year depending on their tax bracket and the interest rate on their mortgages. Also, the taxpayers can file amended returns for the last 3 years which will help them in claiming quite a higher amount in refunds.