Deductible home equity loan interest – The answer is you can still deduct home equity loan interest. But here is some fun fine print you probably weren t aware of.
Both loans are secured by the main home and the total does not exceed the cost of the home.
Deductible home equity loan interest – But with the tax reform brought on by president trump s tax cuts and jobs act tcja a lot of homeowners are struggling to work out whether they can still take a home equity loan tax deduction. As under prior law the loan must be secured by the taxpayer s main home or second home qualified residence not exceed the cost of the home and meet other requirements. Interest on home equity loans has traditionally been fully tax deductible. Deductible home equity loan interest
However if the taxpayer used the home equity loan proceeds for personal expenses such as paying off student loans and credit cards then the interest on the home equity loan would not be deductible. Limits to home equity loan amounts generally homeowners may deduct interest paid on heloc debt up to 100 000. Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy build or substantially improve the taxpayer s home that secures the loan. Deductible home equity loan interest
Because the total amount of both loans does not exceed 750 000 all of the interest paid on the loans is deductible. Deductible home equity loan interest