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Personal Finance and Investing

question everything

(48,797 posts) Mon Mar 19, 2018, 10:58 AM Mar 2018

I've resigned myself to not be able to deduct interest on Home Equity line of credit

but read an article yesterday that if the loan is used to improve the house - which, really, is the purpose of it - that it can be deducted. I've always thought that, just like other deductions, filers should be able to support the claims. I can see that using these loans to pay other credit cards balance, take a vacation or buying a car should not be use for deductions.

On edit: found the link

https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law

(IRS has finally caught up with the new tax law)

2 replies

= new reply since forum marked as read

Highlight:

I've resigned myself to not be able to deduct interest on Home Equity line of credit (Original Post) question everything Mar 2018 OP

I can recall when auto loans and credit card interest was deductible. Yonnie3 Mar 2018 #1

Yup Sherman A1 Mar 2018 #2

Yonnie3

(18,111 posts)

1. I can recall when auto loans and credit card interest was deductible.

Reply to question everything (Original post)

Mon Mar 19, 2018, 11:09 AM

Mar 2018

The original tax act in 1913 allowed all interest paid to be deducted. This ended in the Reagan era.

Sherman A1

(38,958 posts)

2. Yup

Reply to Yonnie3 (Reply #1)

Mon Mar 19, 2018, 12:40 PM

Mar 2018

I recall those days as well. Every time we get tax reform, working people get screwed.

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