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connie-klass
New Member

For the question "Is this the original loan you took out?" Our loan was to do extensive repairs + payoff off debts. Should I a) check original loan or b) home equity?

 
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macuser_22
Level 15

For the question "Is this the original loan you took out?" Our loan was to do extensive repairs + payoff off debts. Should I a) check original loan or b) home equity?

Home equity.   An "original" loan is for the purchase of the home.

Note that in 2018  interest on home equity loans and lines of credit are deductible only  if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.   Paying off debts is not deductible.


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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macuser_22
Level 15

For the question "Is this the original loan you took out?" Our loan was to do extensive repairs + payoff off debts. Should I a) check original loan or b) home equity?

Home equity.   An "original" loan is for the purchase of the home.

Note that in 2018  interest on home equity loans and lines of credit are deductible only  if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.   Paying off debts is not deductible.


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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