2006-07-31 07:26:03 · 8 answers · asked by Bob M 1 in Business & Finance ➔ Taxes ➔ United States
Interest for home equity loans are only tax deductible up to the original purchase price of your property unless they increase the value of the property. Example: 10 years ago you purchased your home for $100,000. The interest on any loans that total $100,000 will be deduct able on your federal taxes unless you use the loan proceeds to add to the property.
2006-07-31 13:53:57 · answer #1 · answered by Daniel Z 6 · 0⤊ 0⤋
Interest on investment property is deductible against the income from the investment property. A home equity loan on your primary residence (subject to certain limits) is deductible regardless of how the money is used. I would expect you to get a better deal with a loan secured by the investment property that with a home equity loan.
2006-07-31 10:54:11 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes it is, assuming that you can secure a home equity loan for the purpose of buying other property. Usually, you can only take out home equity loans to improve the property you are taking the loan against. But, people lie all the time to banks.
2006-07-31 07:48:40 · answer #3 · answered by Brian 5 · 0⤊ 0⤋
Check with your tax advisor, but usually the interest for home equity loans (depending of course on the type of loan) is not deducted from income tax. However, it will reduce any capital gains tax you may have to pay on the investment property.
2006-07-31 07:40:52 · answer #4 · answered by Jennifer W 4 · 0⤊ 0⤋
There are 2 options for you. One, provide that you itemize your deductions, you can deduct home equity interest on a loan amount of up to $100K regardless of how the funds are used on Schedule A. Also, you can deduct the interest as an expense against investment income on schedule E or on business entity return of your choice (Partnership, LLC, Corp).
2006-07-31 08:29:56 · answer #5 · answered by mpzones 2 · 0⤊ 0⤋
The interest will be deductible. I am assuming the property will be a rental property. If it is not, and is held for its appreciation (like raw land) the interest will be limited to your investment income.
2006-07-31 08:01:00 · answer #6 · answered by extra_37 4 · 0⤊ 0⤋
definite!! to respond to your Q. ARE you prepared on residing in a house??? do you opt for for to stay on the line? stay removed from whoever is offering those loans. somebody has a "aim" on your back. you need to make a honest residing or they does not be even finding at you! Please do no longer take the two grant. pass to somebody that would grant you something safer. After costs of activity went down lots of loans have been made -- activity in basic terms--. NOW. those undesirable individuals are being made to sell with the aid of fact they'd't locate the money for to pay the notes. you opt for for to pass there???? lots of individuals with toddlers are looking for a place to stay now with the aid of fact of those varieties of loans good luck!! Please do no longer do the loans
2016-11-03 09:34:51 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Yes!
2006-08-04 03:19:22 · answer #8 · answered by lade40free 2 · 0⤊ 0⤋