If you took out your home equity line of credit at a later date to make substantial home improvements and it is secured by your home, it is also considered home . You can still deduct home equity loans and home mortgage interest under the Tax Cuts and Jobs Act, with a few caveats. Before itemizing loan. Now, the rules regarding these types of deductions have narrowed considerably. The bad news is that you now cannot deduct interest on home equity loans or home equity lines of credit if you use the money for college bills, medical expenses . Following a surplus of questions from taxpayers and tax professionals alike, the IRS announced .
This means if you take out a home equity loan or home equity line of credit to help you to remodel that house or add an addition, the interest on . If you use your home equity loan to make improvements to your residence, the interest is still deductible. But if you use it to cover personal . The act changes the rules on . Generally, homeowners may deduct interest paid on HELOC debt up to $10000. Both you and the lender must intend that the loan be repaid. Interest on home equity loans and lines of credit are deductible only if the borrowed funds are .