I have an unsecured loan in which we used to construct a pool on our property. Can the interest be deducted from this loan?

[ErnieS0]

Probably not. Interest paid on an unsecured personal loan to build a pool is not deductible.

Interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. The loan must be secured by the taxpayer’s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements.

Related Resource:

• Is interest on a home equity line of credit deductible as a second mortgage?