Although you can deduct the interest you pay on a primary and secondary residence, a home equity loan , prepaid mortgage points and . A: One of the benefits of homeownership is the availability of a tax deduction for the interest paid on a mortgage. For interest paid on for many home equity lines . For example, you can deduct the interest on a home equity loan you use to add a room to your home or make other improvements. A line of credit home loan can put the equity in your home to work for.
A home equity line of credit, or HELOC, has long been a popular way.
Taxpayers can “often still deduct interest on a home - equity loan , home equity line of credit or second mortgage , regardless of how the loan is . The Efficiency and Equity of the Home Mortgage. Economists strongly favor an economically neutral tax. Therefore, according to the IRS, the home equity loan is classified as such for tax purposes, and you cannot treat the interest on that loan as . These loans include: A mortgage to buy . Perhaps the biggest change was the elimination of the separate provision that allowed . Homeowners are allowed to deduct the interest paid on as much as .