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jesszep
Level 2

I got a 10k loan from my credit union for a home remodel. Am I able to write it off on my taxes?

 
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Uther
Level 2

I got a 10k loan from my credit union for a home remodel. Am I able to write it off on my taxes?

The interest on the loan MIGHT be deductible if the loan is characterized as a second mortgage and secured by your home the way a primary mortgage would be. If it's just a personal loan and not specifically filed as secured by the homw it is not deductible.

Remodeling expenses are also not currently deductible. You might want to save a record of them, however, as they might be used to adjust the "cost" of your home when you eventually sell it and compute a gain on sale. However, don't sweat it if you don't accurately capture all remodeling expenses: most folks who sell their own home are exempt from tax on any gain anyway.

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1 Reply
Uther
Level 2

I got a 10k loan from my credit union for a home remodel. Am I able to write it off on my taxes?

The interest on the loan MIGHT be deductible if the loan is characterized as a second mortgage and secured by your home the way a primary mortgage would be. If it's just a personal loan and not specifically filed as secured by the homw it is not deductible.

Remodeling expenses are also not currently deductible. You might want to save a record of them, however, as they might be used to adjust the "cost" of your home when you eventually sell it and compute a gain on sale. However, don't sweat it if you don't accurately capture all remodeling expenses: most folks who sell their own home are exempt from tax on any gain anyway.

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