Is HELOC Interest Still Deductible?
Home Equity Lines of Credit (HELOCs) interest is still deductible, according to the IRS. The status of home equity loan interest was in question following the passage of the recent tax law. In a statement released last week, the IRS confirmed that interest on home equity/second loans used to improve a taxpayers’ homes is deductible (up to a combined maximum amount of all loans against the property of $750,000). But interest on HELOC loans is not deductible if the money is used for personal expenses, like credit card debt. Contact your tax professional for advice about your specific situation.