Alert: The interest on your home equity loan may still be deductible

Tighe, Kress & Orr.

By: Tighe, Kress & Orr.

Despite new restrictions under the Tax Cuts and Jobs Act (TCJA), the IRS announced that taxpayers can often still deduct interest on a home equity loan, home equity line of credit, or second mortgage, regardless of how the loan is labeled. On Feb. 21, the IRS clarified that the TCJA does suspend the deduction for interest paid on home equity loans and lines of credit, UNLESS they’re used to buy, build or substantially improve the taxpayer’s home that secures the loan. (IR 2018-32)

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