I have been asked to set a home office for my employer's benefit. I will work from home on daily basis. I know I can deduct a portion of my mortgage payment and utlilties from my taxes, but can I deducted my home equity loan payments? Should I consolidate both loans to get the total tax benefit?
2006-10-26 02:52:28 · 3 answers · asked by chicki3030 2 in Business & Finance ➔ Small Business
Interest paid on a home equity loan is deductible as mortgage interest as long as the home equity loan is not greater than $100,000. If such a loan exceeds $100,000 then you would have to trace what the funds were used for to seen if any additional interest is deductible.
Interest paid on a home equity line of $100,000 or less is deductible on schedule a as mortgage interest but it is not deductible when you are computing alternative minimum tax.
Mortgage interest is defined as a loan obtained to purchase, construct or improve a personal residence plus a home equity loan of no more than $100,000. The overall limit on such loans is $1,000,000 plus the $100,000.
2006-10-26 03:05:45 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
i'm not contained in the authentic property/Banking international yet I do own a house and rea ding your difficulty I do experience that you receives approved for a 2d loan. Your debt to income is low in accordance to the guidance that you gave so this may teach some creditablity on your behalf and get your approved. With the below-average credit document - the interest cost might want to be a touch larger. best of luck
2016-12-05 06:11:18 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Mmmh I've noted that thanks.
BTW I'm the Tax Man (or my friends call me Lucifer).
2006-10-26 02:54:37 · answer #3 · answered by Anonymous · 0⤊ 1⤋