Since thetax law changed in 2017, the tax deductibility of interest on a HELOC or a home equity loan depends on how you spend the loan funds. That applies to interest on loans that existed before the new tax legislation as well as on new loans. Here’s how it works. ...
Also, if you’re a homeowner with ahome equity line of credit (HELOC), you can no longer deduct the interest if you used the funds for purposes other than buying, building, or substantially improving the home on which you took out the HELOC.11This is important, as surveys suggest millenni...
Also, tax deductibility of an investment loan depends on if you use the proceeds to generate business/investment income. You cannot use a HELOC secured against your rental property on personal expenses and still claim the interest as a tax deduction....
If you feel overwhelmed by the tax rules surrounding HELOCs, engage with a CPA or other financial professional well-versed in tax law to help walk you through the tax-deductibility rules of a home improvement using a HELOC. If you are still uncertain and want to feel more secure, you can...