Tax Deductible Home Equity Loans

For homeowners, writing off the interest on a home equity loan justifies taking out a 2nd lien that is secured against their property. If you meet the current equity loan guidelines then you are eligible to borrow against your home and cash out.

Do you have credit card debt? Did you know that in most instances, credit card interest is not deductible for consumers? However consolidating credit card interest into a home equity loan is tax deductible. The IRS says that homeowners can write-off the interest paid on home equity loans for amounts up to $100,000. The same goes for home equity credit lines. However with equity lines you are only able to deduct the interest for the portion of credit line used. For example, if you take out a $75,000 home equity line but only access $40,000 of the line then you can only write-off the $40,000.