2007-02-14 14:18:37 · 4 answers · asked by andrew k 1 in Business & Finance ➔ Taxes ➔ United States
As long as your equity line of credit is less than $100,000, the interest is deductible. However, if the fair market value of your home minus the total acquistion debt (1st mortgage) is less than $100,000 your deductible equity line of credit is limited to that amount. For example, if your home is valued at $125,000 and your first mortgage is $95,000 you can only deduct the interest on an equity line of $30,000 ($125K - $95K = $30K)
And if you're filing married filing separately the $100,000 max goes down to $50,000.
2007-02-14 16:12:01 · answer #1 · answered by Anonymous · 1⤊ 1⤋
If the loan is secured by your main home or a second home, then yes, it is tax deductible on Schedule A. The loan may be a mortgage to buy your home, a second mortgage, a home equity loan, or a line of credit.
2007-02-14 14:26:51 · answer #2 · answered by tma 6 · 1⤊ 1⤋
If I understand this correctly, you are talking a home equity loan? Then yes the interest is tax deductible. Went thru that 2 years ago.
2007-02-14 14:28:05 · answer #3 · answered by lavachk1 5 · 2⤊ 1⤋
If you have, or are going to get a HELOC, you may be interested in this new program. It works well with a 30, 20, or 15 year mortgage. I am currently using a HELOC with a new software program that helps build equity fast, and will payoff my home in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years, and also is helping me payoff some other debt as well.
2007-02-15 11:40:36 · answer #4 · answered by marshae 1 · 0⤊ 0⤋