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Returning Member
posted Mar 2, 2019 5:45:28 AM

HOME EQUITY LOAN INTEREST

I paid $3584 in home equity loan interest in 2018. In June of 2018, I put on a new roof ($12200.00) as well as other repairs. I just learned that I could deduct this interest???  Is this correct?  I have already submitted my tax returns. What do I need to do? 

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3 Replies
Employee Tax Expert
Mar 2, 2019 9:00:42 AM

Yes, you can deduct the portion (the interest related to the roof) of your home equity interest that is related to improving your main home or second home. If you have already filed, you would need to file an amended return to make any changes to it. Note: The 1040x form is not available until approx. 3/7. When it's ready, see the directions in the link below.

 

How to amend

Returning Member
Mar 2, 2019 9:18:46 AM

How do you determine the portion of the home equity interest that is related to the roof and the other repairs? Is there a formula?  Thanks!

Employee Tax Expert
Mar 2, 2019 9:39:24 AM

You can use a ratio of repair total/total home equity loan proceeds. Then apply the ratio to total interest.