Skip to main content
Level 1
June 12, 2025
Solved

If I have paid off my house and get a home equity loan for upgrades is the loan taxed?

  • June 12, 2025
  • 2 replies
  • 41 views
No text available
    Best answer by DoninGA

    Expert Reviewed

    No.  A Home Equity Loan or a Home Equity Line of Credit is not reported on your tax return as taxable income.

     

    The cost of the improvement to your personal residence is included in the Adjusted Basis of the home when the home is sold.

    2 replies

    Level 15
    June 12, 2025

    No, the loan is not taxable income.  It is money you have to pay back and pay interest on until it has been repaid to the lender.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    DoninGA
    Level 15
    DoninGALevel 15Answer
    Level 15
    June 12, 2025

    Expert Reviewed

    No.  A Home Equity Loan or a Home Equity Line of Credit is not reported on your tax return as taxable income.

     

    The cost of the improvement to your personal residence is included in the Adjusted Basis of the home when the home is sold.