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Interest on home equity loans or lines of credit are still deductible, but only if the loan is used to buy, build, or substantially improve the home and the total mortgage doesn’t exceed $750,000.
If the loan proceeds are used for something else (for example, to pay off debt) in 2018 through 2025, the interest is not deductible.
See this FAQ: https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...
Interest on home equity loans or lines of credit are still deductible, but only if the loan is used to buy, build, or substantially improve the home and the total mortgage doesn’t exceed $750,000.
If the loan proceeds are used for something else (for example, to pay off debt) in 2018 through 2025, the interest is not deductible.
See this FAQ: https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...
Hi,
My question is is Home equity interest paid from my main home used to purchase a rental property tax deductible? Does this qualify ?
Yes.
You would be able to deduct the mortgage interest expense related to your Schedule E to offset your rental income instead since this interest is related to this rental property.
Since the rental property is not related to your home, you would not be able to deduct the mortgage interest as an itemized deduction.
[Edited 3/8/2020|2:36pm PST]
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