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We just paid off our mortgage, but have a great home loan equity that we took advantage of the tax deduction. Now that the mortgage is repaid, it is questionable whether the loan is still deductible.

4 Thoughts on Is my tax deductible home equity loans, even though I am no longer a mortgage?
  1. Reply
    Wayne Z
    May 3, 2011 at 7:11 am

    Yes, the interest is still deductible.

    Keep in mind that you don’t what to pay interest just to get a tax deduction.

  2. Reply
    May 3, 2011 at 7:59 am

    Till your loan is fully paid off, you can claim the interest amount as paid by you or accrued on the loan as Income Tax benefit but if you money pay it otherwise you are unnecessary paying interest.

  3. Reply
    May 3, 2011 at 8:24 am

    It is a debt secured by your house, but it is not acquisition debt, so there are restrictions. If the loan is for less than $ 100,000 then the interest is fully deductible. If the loan is for more than $ 100,000 the interest is deductible only if the loan paid for improvements to the house.

  4. Reply
    May 3, 2011 at 9:14 am

    Your equity loan is still tax deductible, but the paid mortgage is not, because you can only deduct the interest you have paid for the year. You can also still deduct the taxes you paid for the year on the property. For further information regarding this, consult your accountant.

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