Bookkeeping

Can I deduct line of credit?

I refinanced my house, if I have money left over can I use it on something else and still deduct all the interest expense?

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Answer

  1. 74 Answers

    Hi there in 2017 the tax law changed, the home equity line of credit referred to as HELOC interest can only be deducted if the funds are used for renovations, which as either buying, building, or substantially improving the home in which you received the HELOC on. There are limitations to the interest deduction which is $750,000 or $375,000 if you are married filing separately. Unfortunately, only the portion used as referenced above to buy, build, and substantially improve the residence is deductible.

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