Home equity loan to buy second property

cody1219 · ‎February 3, 2024

If I took a home equity loan on my primary residence and used it to purchase a 2nd home, can the interst be deducted?

AnnetteB6 · ‎February 3, 2024

No, the proceeds of the home equity loan must be used to 'buy, build, or improve' the home that is securing the loan. This is the case from tax year 2018 through 2025 due to a tax law change.

To learn more, take a look at the following TurboTax help article:

Can I deduct interest on a home equity loan or a HELOC?

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AnnetteB6 · ‎February 3, 2024

No, the proceeds of the home equity loan must be used to 'buy, build, or improve' the home that is securing the loan. This is the case from tax year 2018 through 2025 due to a tax law change.

To learn more, take a look at the following TurboTax help article:

Can I deduct interest on a home equity loan or a HELOC?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Home equity loan to buy second property