Can I deduct all mortgage interest if I refinanced in 2016 and cashed out $50K for home improvements and debt?
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karenfrye99
New Member

Can I deduct all mortgage interest if I refinanced in 2016 and cashed out $50K for home improvements and debt?

 
1 Reply
AlanT
Expert Alumni

Can I deduct all mortgage interest if I refinanced in 2016 and cashed out $50K for home improvements and debt?

No, you can only deduct the interest on the line of credit that was used to buy, build or substantially improve your home. This is a new requirement for tax years 2018 through 2025. 

You will have to determine the percentage of the loan that was used to pay your personal debts.  The interest on that portion of the loan will not be deductible.  

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