Is home equity interest still deductible?

Not unless you’ve used the money to buy, build, or substantially improve your home. Before the tax law changes, homeowners were able to take out a home equity loan and spend it on things other than their residence. Now, you can only deduct interest on acquisition indebtedness, meaning a loan used to buy, build, or substantially improve a residence. If you took out a home equity loan pre-2018 and used it for any other purpose, interest on it is no longer deductible.

Leslie Lewis Froio
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Leslie Lewis Froio

Certified Public Accountant

Leslie has been a licensed Certified Public Accountant since 1997. Leslie is a Member in good standing with NHSCPA and AICPA.
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