topic Can I deduct interest on a second mortgage which was used to pay off a HELOC and credit cards bills? in Deductions & credits

Can I deduct interest on a second mortgage which was used to pay off a HELOC and credit cards bills?

48bounce1969 — Tue, 04 Jun 2019 19:44:02 GMT

If the second mortgage was secured by your personal resid...

DoninGA — Tue, 04 Jun 2019 19:44:04 GMT

If the second mortgage was secured by your personal residence, then the mortgage interest paid would be deductible and entered on Schedule A as an itemized deduction.

Re: If the second mortgage was secured by your personal resid...

hughey598msncom — Wed, 03 Feb 2021 04:44:55 GMT

My second mortgage is secured by my personal residence, however, through turbo tax, and other research, everything I read indicates the interest is not tax deductible if the funds acquired by the second were not directly used for adding value back into the home; i.e. remodel, repairs, etc... If you used the funds for paying off other credit cards, other loans, other debt, then you cannot claim the interest from this loan as an itemized deduction. Now I am confused, what is right, your answer or the information I am reading elsewhere?

Re: If the second mortgage was secured by your personal resid...

Opus 17 — Wed, 03 Feb 2021 05:14:59 GMT

This forum contains many answers dating back to 2015 and earlier, which ended up getting new dates in June 2019 when they were copied over to the new software. You are correct that equity interest is no longer deductible after the 2018 tax cut and jobs act.

Re: If the second mortgage was secured by your personal resid...

hughey598msncom — Wed, 03 Feb 2021 04:54:42 GMT

Thank you Opus 17.