QandAs: Loans

Is Interest on a Home Equity Line of Credit Tax Deductible?

Answer:
Yes, according the IRS, interest on

a home equity line of credit (HELOC), may be tax deductible. The interest must be listed as an itemized deduction; and, will be subject to specific limitations.

Basically, a HELOC or a home equity loan is considered to be a second mortgage on your home. With such a loan, or line of credit, you’re able to borrow against the value of your home to pay off debts or pay for expenses such as home remodeling. The interest rate on this type of loan or line of credit can be utilized as a tax deduction on a Form 1040, Schedule A, Itemized Deductions.


	more Q&A sessions like this
	How can I pay for a home improvement project? What is a Second Mortgage? What is a second mortgage? What Does Borrowing Against my Equity Mean? Is a home equity loan considered refinancing? What is an 80/20 Mortgage? What does HELOC stand for? What is Cash Out Refinancing? Can you convert a Home Equity Line of Credit into a Second Mortgage? Can I consolidate my debt on a credit card? Where can I get cash for a remodeling project? What is Foreclosure Fraud? What is Home Equity Fraud? What is Amortization? What is a Leaseback? What is Loan Servicing Fraud?