I have a home equity line of credit that was taken out on 09/26/2016. I'm trying to determine what portion of interest can still be deducted in 2018. The loan has been used for a variety of purposes including debt consolidation over the past 3 years. In 2018 the balance basically stayed the same and interest payments were made all year. (The was a $14000 payment made towards principal but later in the year advances equaled almost the same.)
Yes, you will need to document the portion that was used for property improvement only. You will only be able to claim the interest on the portion that was used to buy, build or substantially improve your home regardless of when the loan was taken out. As you walk through the Mortgage Interest questions, TurboTax can help you with the calculations.
"Home equity loan interest. No matter when the indebtedness was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the loan proceeds weren't used to buy, build, or substantially improve your home."https://www.irs.gov/publications/p936
Yes, you will need to document the portion that was used for property improvement only. You will only be able to claim the interest on the portion that was used to buy, build or substantially improve your home regardless of when the loan was taken out. As you walk through the Mortgage Interest questions, TurboTax can help you with the calculations.
"Home equity loan interest. No matter when the indebtedness was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the loan proceeds weren't used to buy, build, or substantially improve your home."https://www.irs.gov/publications/p936