20% cost of my home was financed thru personal installment loan. is the interest tax deductible?

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20% cost of my home was financed thru personal installment loan. is the interest tax deductible?

80% of the cost price was financed thru mortgage loan. So I have two notes, mortgage and installment loan. Can the interest on the installment loan tax deductible? If so can you please also provide reference to the source preferably IRS.

2007-12-23 18:35:17 · 2 answers · asked by Rohit D 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

By definition a personal loan is not secured by anything but your signature. If that is the case, the interest on it is NOT deductible. If the 20% loan is actually a mortgage loan, i.e. it is secured by the property, then it would be deductible.

2007-12-23 22:27:49 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋

2016-09-28 10:34:47 · answer #2 · answered by Clayton 3 · 0⤊ 0⤋