Qualifying home equity interest deduction

Under the new law, for example, 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. As under prior law, 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—Read more at IRS.gov. “Interest on Home Equity Loans Often Still Deductible Under New Law.” 21 February 2018