I refinanced my home and it was a new loan of 392,000. 150,000 of that was cash to me to buy a second home. Not a rental or investment. Is the full interest deductible?

Forum|Forum|6 years ago
July 9, 2020
2 replies
1 view

Or is only the the Interest on the portion of the loan minus the 150k deductable?

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MinhT1

Level 15

Only the interest on $242k ($392k - $150k) is deductible.

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Carl

Level 11

38% was a cash out above the balance owed at the time of the refi. So you can only claim 62% of the interest you paid on the refi loan. What you did with the 38% that was cash out money doesn't matter. The interest on it is not deductible.

I refinanced my home and it was a new loan of 392,000. 150,000 of that was cash to me to buy a second home. Not a rental or investment. Is the full interest deductible?

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