Deleted
Joined: Nov 22, 2024 5:52:59 GMT -5
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Post by Deleted on Dec 15, 2014 18:24:56 GMT -5
Can someone give me a basic overview of guidelines on tax deduction of HELOC interest? I am applying for a $50,000 HELOC to update my 1959 owner-occupied home and understand some or all of the interest may be deductible. Of course my CPA will make the final determination when he prepares my taxes in 2016, but I'm hoping you can give me a quick Cliff Notes version of the applicable law. Are there income based limits, hard dollar limits, what? TIA, great tax gurus.
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Dec 16, 2014 22:08:48 GMT -5
Generally interest incurred under the terms of a home equity line of credit is deductible for loan balances of 100,000 or less. If the borrowings were not used to improve the home then the interest is not allowed for "amt" purposes.
more information can be found at www.irs.gov/publications/p936/index.html (this is a link to IRS publication 936, related to home mortgage interest) |
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