by Michael Lodge
Clients take out an home equity line to help out on paying credit card debt down or other financial strategies they may have. So the question is important to ask – is it deductible and what are the tax rules that govern this deduction. So let’s go over them very quickly.
Question: Is interest on a home equity line of credit deductible as a second mortgage?
You may deduct home equity debt interest as an itemized deduction if all the following conditions apply:
- You pay the interest in the tax year
- The debt is secured with your home
- The home equity debt is limited to the fair market value of the home reduced by home acquisition debt, up to a total of $100,000 ($50,000 if filing as married filing separately).
If you have tax issues you need help on please call our office at: 877.778.1770 Visit our web site at: www.icontaxgroup.com