Is yearly insertest paid on a Home Equity Line of Credit tax deductable?
2007-04-11 12:45:09 · 3 answers · asked by china 2 in Business & Finance ➔ Taxes ➔ United States
Yes, but there is a limit. See excerpt from IRS.gov below:
"There is a limit on the amount of debt that can be treated as home equity debt. The total home equity debt on your main home and second home is limited to the smaller of:
$100,000 ($50,000 if married filing separately), or
The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home."
If you were to do a refi and make the HELOC part of your loan, you can deduct interest up to the first million dollars of mortgage debt.
2007-04-11 15:15:52 · answer #1 · answered by sunshine 3 · 0⤊ 0⤋
Yes your interest is tax deductable. Good question !!!! It falls into the same catergory as mortgage interest.
2007-04-11 14:39:35 · answer #2 · answered by hoss_994 2 · 0⤊ 0⤋
Yes it is, as mortgage interest, if you itemize.
2007-04-11 14:32:13 · answer #3 · answered by Judy 7 · 1⤊ 0⤋