4. **Non-Qualified Loans:** Loans that don't meet the eligibility criteria, such as those used for personal expenses or investments, are not eligible for the deduction. * **Home equity loan**: A loan secured by your home's equity that allows you to borrow money for various purposes, such as renovations, education, or debt consolidation. More information https://tradeprofinances.com/mortgage/is-mortgage-interest-tax-deductible-in-california/ * **Other Supporting Documents:** Depending on your specific circumstances, you may need additional documentation, such as receipts for home improvements or a statement from your lender clarifying the nature of any points paid. * **Specific Rules for Deduction:** The rules for deducting points are complex. Refer to the IRS website for specific guidance. 2. **Loan Amount:** The deduction is capped at interest paid on mortgages up to $750,000. This limit applies to the combined debt on both your primary and second homes. | **California** | **No** | Property taxes, insurance premiums, energy-efficient upgrades | | Feature | Federal Tax Deduction | California State Tax Deduction |