I Am Interested In Using A Home Equity Loan For Home

Q: I am interested in using a home equity loan for home improvments and debt consolidation. All these loans come with verbage saying, "may be tax deductible". What's the criteria for the loan to be tax deductible?

A: I am interested in using a home equity loan for home improvments and debt consolidation. All these loans come with verbage saying, "may be tax deductible". What's the criteria for the loan to be tax deductible? I'll add two things to Bruce Steiner's response. (At least I think I'm adding; I've only had two sips of coffee.) 1. If you use some of the proceeds for improvements to the house, you may be able to count them toward the "home acquisition" part of your debt, which is subject to a limit of $1 million or the total of the purchase price plus improvements, whichever is less. 2. Get IRS Publication 936 for a complete discussion. .

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