I bought a house in 2014 with a mortgage and a heloc. Does the heloc still will qualify for the interest deduction in 2018?

[DoninGA · Accepted solution]

According to the tax bill before Congress, No the interest from a Home Equity loan would not be deductible.

Go to this website and see Item 7 - http://money.cnn.com/2017/12/15/news/economy/gop-tax-plan-details/index.html

7. Lowers cap on mortgage interest deduction: If you take out a new mortgage on a first or second home you would only be allowed to deduct the interest on debt up to $750,000, down from $1 million today. Homeowners who already have a mortgage would be unaffected by the change.

The bill would no longer allow a deduction for the interest on home equity loans. Currently that's allowed on loans up to $100,000.

[TaxGuyBill]

If the HELOC was used to buy, build or substantially improve your home, it would still be deductible.  However, other amounts would not be deductible.

[jprinc2]

Thanks