Yes - It is deductible as home mortgage interest, as long as the debt is secured by the home.
Home equity debt is limited to the lesser of:
- fair market value of the home minus total acquisition debt; or
- $100,000
To enter interest on the home improvement loan, please follow these steps:
- Click on Federal Taxes >
Deductions & Credits.
- In the Your Home section,
click on the Start/Revisit box next to Mortgage Interest,
Refinancing, and Insurance. [See Screenshot #1, below.]
- If you haven't entered any
mortgage information yet, just proceed through the screens, entering the
requested information on your first mortgage. When finished, you
will be brought to the Mortgage Deduction summary screen.
- If you've already entered
information on one loan, you will be brought to the Mortgage deduction
summary screen. Click the Add a Lender box on the Mortgage
deduction summary screen. [Screenshot #2]
- Proceed through the screens,
entering the requested information.
- Your will be brought back to the Mortgage
deduction summary again. You can click on the Add a
Lender box as many times as you need to enter your loans.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
