2nd Mortgage Home Equity Loan Taxable Income

[PB 2024]

Hello,

Just to clarify, I'm not asking about tax deductions, I'm more concerned about paying additional tax on income.

I'd like to confirm that the sum of money wired to me from a Home Equity Loan will NOT be counted as Taxable Income at the end of the year.

Also, if the loan is given to me but the property is owned by 2 people, can both people on the title access that money without tax implications.

[DoninGA]

Funds received from a Home Equity Loan are never reported as taxable income on a tax return.

You only need to enter the interest paid on the loan as an itemized deduction on Schedule A, if the loan proceeds were used for home improvement on the property that secures the loan.