Your Home Equity Loan:
Interest paid on home equity loans, and HELOCs are deductible on Schedule A.
However, since 2018, the deductions may be limited or disallowed.
When Congress passed the TCJA, they placed a handful of restrictions on interest deductions for home equity loans and HELOCs.
Interest on these loans is generally not deductible. Still, the interest can be deducted if the funds are used to “buy, build or substantially improve” the property secured by the loan.
Additionally, the TCJA limited the deduction to interest on acquisition loans (including home equity loans and HELOCs) of no more than $375,000 ($750,000 if filing a joint return).
All this is to say that any home equity loans and HELOCs you might have taken could be up against deduction limitations for the next few years.
But, I have a few tax planning strategies to offset this.
Let’s talk —-> [schedule a time here]