interest paid on a home equity loan is not deductible

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If the home equity loan was for $300,000, the interest on $50,000 of the loan would not be deductible. However, if the the home equity loan was used for personal expenses, such as paying off student loans and credit cards, none of the interest on the home equity loan would be deductible.

Under IRS rules, you can only deduct interest paid on a HELOC up to a loan amount of $100,000 ($50,000 if you are married filing separately) if the money is used for purposes not related to the home. This is an extremely popular way that people take HELOCs in the first place.

I have a home equity line of credit on my primary residence. Interest is deductible for 2017, but under the new tax law, interest from that HELOC is not deductible for 2018 taxes. If I refinance the home with a new primary mortgage and pay off the HELOC, is the interest from that new loan tax deductible for 2018 taxes?<br /></p>

If the borrowed money is not used for a qualified business transaction (such as purchasing rental property) then the interest is not a deductible business expense. It may qualify to be deductible in other ways. But not as a business expense.

Can you still deduct interest on a home equity loan or a home equity. The new law only affects whether you can deduct the interest payments.

home equity installment loan Home-Equity Loan: A home-equity loan , also known as an "equity loan," a home-equity installment loan , or a second mortgage , is a type of consumer debt. It allows home owners to borrow against.

Taxpayers used to be able to take a home equity loan or tap into a home equity line of credit, spend the money on whatever they wanted (pool, college tuition, boat, debt consolidation) and the interest on the loan was tax deductible.

fha bankruptcy chapter 7 Chapter 4, Section C HUD 4155.1 4-C-4. 1. general guidelines for Analyzing Borrower Credit, Continued. 4155.1 4.C.1.d Lack of established credit history. The lack of a credit history, or the borrower’s decision to not use credit, may. not be used as the basis for rejecting the loan application.

1. taxpayers may only deduct mortgage interest on up to 1,000,000 of acquisition indebtedness 2.the amount of qualified home-equity indebtedness is limited to the lessor of a)the fmv of the qualified residence in excess of the acquisition debt related to the residence b)100,000(50,000 for married filing separately)

Because the total amount of both loans does not exceed $750,000, all of the interest paid on the loans is deductible. However, if the taxpayer used the home equity loan proceeds for personal expenses, such as paying off student loans and credit cards, then the interest on the home equity loan would not be deductible.

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