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posted Jun 3, 2019 10:39:27 AM

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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Level 15
Jun 3, 2019 10:39:28 AM

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.


1 Replies
Level 15
Jun 3, 2019 10:39:28 AM

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.