The bill amends Minnesota Statutes 2022, section 290.0122, subdivision 5, to disallow the itemized deduction for mortgage interest on a second home. It specifies that qualified residence interest, as defined under section 163(h)(3), is limited to interest paid or accrued on a principal residence and excludes any other residence. This change aims to clarify the types of mortgage interest that can be deducted, thereby impacting taxpayers who own multiple homes.

Additionally, the bill includes an effective date stating that the new provisions will apply to taxable years beginning after December 31, 2022. This means that taxpayers will need to adjust their deductions accordingly starting with their 2023 tax filings.

Statutes affected:
Introduction: 290.0122