I have a client that is taking standard deduction on the fed return, client want to know if, for the calif tax return want to itemized on the calif return. Can the taxpayer, home mortgage on the calif return can it be deducted, and is it a addition or subtraction?
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California did not conform to the temporary changes under TCJA, so mortgage interest on up to $1 million of acquisition debt and $100K of equity debt is still deductible.
See the instructions for Schedule CA(540). The additional CA mortgage interest deduction is added to the federal Schedule A amount, increasing the total CA itemized deductions, which (if greater than the standard deduction) are then subtracted from CA AGI, decreasing the total CA taxable income."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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