If the interest is tax deductible, what is the percentage...100%, 75% etc?
2007-01-16 03:25:46 · 6 answers · asked by patswin07 1 in Business & Finance ➔ Taxes ➔ United States
The answer depends on several fctors that cannot be gleaned from your question. See IRS Publiction 936 for your particular circumstances.
2007-01-16 03:40:56 · answer #1 · answered by SDD 7 · 0⤊ 0⤋
Probably yes, although there are some limits. If it's deductible, you can deduct all the home equity loan interest. You must itemize. Your tax savings will depend on your tax bracket - if you're in the 15% bracket, $1000 deducted in interest will save you $150 in taxes.
2007-01-16 04:28:11 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
To simplify your answer, I will assume that you have only one mortgage on the purchase of your home, and one home equity loan, and that your home is worth less than 1.1 million dollars.
Take the least of the following numbers:
1. The current value of the home minus the mortgage balance
2. The amount of your home equity loan
3. $100,000
The interest on the part of your home equity loan that is the least of the three numbers above is the interest you can deduct.
2007-01-16 05:07:54 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
Yes, the interest is tax deductible at 100%.
2007-01-16 03:35:32 · answer #4 · answered by loan shy 1 · 0⤊ 0⤋
You can deduct the interest on up to $100,000 of such borrowing. Interest on any amount above the $100,00 would not be deductible unless it was used for investment or home improvements.
2007-01-16 04:57:35 · answer #5 · answered by waggy_33 6 · 0⤊ 0⤋
because the inner most loan is on sources positioned contained in the U. S., the pastime and taxes are deductable. yet in case you purchase a sources in Panama you could't deduct the same on your US taxes.
2016-12-02 09:04:24 · answer #6 · answered by ? 4 · 0⤊ 0⤋