IRS Logo
 
Print - Click this link to Print this page

Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)

Question: I took out a home equity loan secured by my main home to pay off personal debts. Is this interest deductible? Where do I enter this amount on my tax return?

Answer:

A loan secured by your personal residence but taken out for reasons other than to buy, build, or substantially improve your home, such as to pay off personal debts, may still qualify as home equity debt.  Home equity debt is limited to the fair market value of the home reduced by home acquisition debt, up to a total of $100,000 ($50,000 if married filing separately). You may deduct the interest paid during the year on home equity debt as an itemized deduction on Schedule A (Form 1040) (PDF), Itemized Deductions, generally on line 10.

Additional Information:


Category: Itemized Deductions, Standard Deductions
Subcategory: Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)

Please provide your feedback.

1. Was it easy to find your information within the above Frequently Asked Question?

2. How satisfied are you with the information provided within the above Frequently Asked Question?

3. If you still need help from the IRS, what would your next step be?




The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue NW
Washington, DC 20224