Kesyon Is interest on a home equity line of credit deductible as a second mortgage? Repons It depends. Interest paid on home equity loans and lines of credit is only deductible when you use the proceeds to buy, build or substantially improve your home that secures the loan. For example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. The loan must be secured by the taxpayer’s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements. Plis enfòmasyon Tax Topic 505 - Interest Expense Publication 936, Home Mortgage Interest Deduction Can I Deduct My Mortgage-Related Expenses? Kategori Itemized Deductions, Standard Deduction Sou-Kategori Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)