 |
Deducting That Interest |
| |
 |
Dear Edith: Can the interest you pay on home equity loans be written off on your taxes if you itemize deductions? Does it matter what you use the home equity loan for and how does that work? |
| |
| |
 |
As long as the loan is a lien against your real estate and entered in the county’s public records, then yes, the interest is tax-deductible if you itemize.
The dollar limits are so high they don’t bother most of us. You can deduct interest paid on a total of up to one million dollars borrowed to buy or improve a first and even a second home. You can also deduct interest on up to $100,000 of further borrowing, no matter what you use the money for.
|
| |
|
Edith
Originally published on November 6, 2006 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
