In 2019, Richie Rominey purchases a new $4.3 million qualified principal residence in Palo Alto, California using a mortgage loan of $3 million. Richie's mortgage interest deduction may be limited.

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Starting in 2018, the Tax Cuts and Jobs Act (TCJA) limits the amount of mortgage interest that can be deducted on a qualified principal residence to interest on up to $750,000 of acquisition indebtedness. Since Richie's mortgage loan is for $3 million, only a portion of the interest paid may be deductible.

In 2019, Richie Rominey Purchases a New $4