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Returning Member

Home loan or HELOC

With regards to below explanation I read on another post, please explain how you would even show that the funds were used to buy or build your primary home? Besides answering the question in turbo tax how does anyone know how you used the money?

 

  • In most cases, you can deduct your interest. How much you can deduct depends on the date of the loan, the amount of the loan, and how you use the loan proceeds.

 

 

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Level 15

Home loan or HELOC

Like everything else, incomes taxes are on the honor system backed up by audits.  If the IRS audits you, you must be prepared to show how you spent the money.  For example, if you take out an HELOC for home renovations, you should be able to show invoices or supplies and contractors for the renovation work.  

*Answers are correct to the best of my ability but do not constitute legal or tax advice.*
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