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posted Feb 3, 2024 4:24:04 AM

Home equity loan to buy second property

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

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1 Best answer
Employee Tax Expert
Feb 3, 2024 7:13:47 AM

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?

 


 

1 Replies
Employee Tax Expert
Feb 3, 2024 7:13:47 AM

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?