Is there a limitation on the amount of deductible mortgage interest?

Mortgage interest can be taken on a home loan as long as the loan is under $1,000,000. Interest on loan amounts over $1,000,000 would be excluded.

Example: A taxpayer buys a $3,500,000 home. The taxpayer finances $2,000,000 through a mortgage secured on the house and makes interest payments of $100,000 over the course of the year. $50,000 of the interest is allocable to the loan amount under $1,000,000 and is tax deductible. The other $50,000 of the interest is not tax deductible.