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Deductions & credits
Yes, if it was a cash-out refi or equity loan not used to improve your personal residence the amount can no longer be deductible, even if it was to pay off your second home. According to IRS, you must have used the extra equity or cash out to: buy or build a homestead or improve your existing homestead substantially to claim the tax deduction. Equity used to be deductible but tax laws changed in 2018.
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March 3, 2023
1:02 PM