Is home equity loan interest tax deductible?

[Samuel]

Hi everyone, I’m trying to understand how home equity loans work when it comes to taxes. I’ve heard that sometimes the interest paid can be tax deductible, but I’m not sure under what conditions this applies. Does anyone know the rules or have personal experience with this?

 

[Rick_Grimes]

Yes, but only if the loan is used to buy, build, or substantially improve your home. If the money is for personal expenses (like paying off credit cards), the interest is not tax deductible.

 

[peterkavinsky]

Yes, home equity loan interest can be tax deductible, but only if the loan is used to buy, build, or substantially improve the home that secures the loan. If the funds are used for personal expenses, like paying credit card debt or funding vacations, the interest is not deductible. Always check IRS guidelines or consult a tax professional for your specific situation.

 

[Lucky]

Yes, home equity loan interest can be tax deductible, but only if the funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan. Personal expenses, like paying off credit cards, don’t qualify. The IRS allows deductions under certain limits, so it’s best to consult a tax advisor for eligibility.

 

[alenaghose]

The interest on a home equity loan is tax deductible provided the loan obtained is used to purchase, construct, or complete a significant improvement to the home on which the loan is secured by the taxpayer. There are some restrictions on the deductions under the Tax Cuts and Jobs Act, and the interest payable on personal loans is not deducted (e.g., debt repayment, vacations).

 

[jainnorton]

Yes, home equity loan interest is tax deductible only if the funds are used to "buy, build, or substantially improve" the home that secures the loan, as per IRS guidelines. Other uses do not qualify.