 |
Home Equity Loan Tax Deduction Info
Home equity loans are another great source for homeowners to find tax deductions that can help them put more money in their pockets. Homeowners can deduct the interest on 2nd mortgage loans up to $100,000. Get fixed or adjustable rate second mortgages for cash out or rate & term refinancing.
Question:
Recently, I did a home equity loan & used the loan proceeds to consolidate personal debts. Is this interest deductible?
Answer:
A home equity loan or second mortgage are deductible in most cases for reasons like buying, building and making notable home improvements. If you paid off personal debts, it will most likely qualify as home equity debt. The amount you can deduct as interest on home equity debt may be subject to certain limitations. For more information, refer to Publication 936, irs.gov/publications/p936/index.html
References:
irs.gov/publications/p936/index.html
irs.gov/taxtopics/tc515.html
|
|
|
| Resource Tools |
Loan Comparison Calculator
This calculator will help you to compare the total mortgage interest charges of 4 types of loans.
|
|
|
