ANSWERS: 2
  • You may deduct home equity debt interest, as an itemized deduction, if you are legally liable to pay the interest, pay the interest in the tax year, secure the debt with your home, and do not exceed certain limitations.
  • depends...how much money are you taking out and what are you going to do with the money? If you exceed $100K and DO NOT put the money back into the home, then the interest is NOT deductible! The IRS is now watching this area very, very closely since so many people who took their equity out are now walking away from their homes!

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