If I pay off my mortgage loan using a home equity loan in 2018, will the interest on the home equity loan be tax deductible? Thanks
On the IRS website https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law it says "The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan"...... It doesn't say if it's used to pay off mortgage, will it still be deductible.
I called the IRS and I've been told that they are not ready yet to give out information about the new tax reform and I should check back in couple of months or maybe closer to the end of 2018!
I wanted to get the HEL loan now as I found a good rate which will be much better than refinancing option for me but now it's not clear to me if it will be in my benefit or not.