|
Posted by My interest on March 28, 2008, 3:39 pm
Please log in for more thread options
If I borrow $200K home equity line of credit to (partially) pay down
my mortgage. Can the interest on the line of credit fully deducted?
IRS website indicates if the loan is used other than build / improve
your home, you can only deduct interest on up to $100K.loan.
So I think the answer to my question above is yes. But can anybody
either confirm or reject it? Also, what document / evidence should I
keep to fence off IRS if it challenges me on my deduction?
Thanks.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Paul Thomas, CPA on March 28, 2008, 3:55 pm
Please log in for more thread options
> If I borrow $200K home equity line of credit to (partially) pay down
> my mortgage. Can the interest on the line of credit fully deducted?
>
> IRS website indicates if the loan is used other than build / improve
> your home, you can only deduct interest on up to $100K.loan.
>
> So I think the answer to my question above is yes. But can anybody
> either confirm or reject it? Also, what document / evidence should I
> keep to fence off IRS if it challenges me on my deduction?
I see it as some form of a re-fi. As long as nothing is being used for
other purposes, like a vacation, car, boat.....then deduct away.
--
Paul A. Thomas, CPA
Athens, Georgia
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by My interest on March 28, 2008, 8:30 pm
Please log in for more thread options >
> I see it as some form of a re-fi. As long as nothing is being used for
> other purposes, like a vacation, car, boat.....then deduct away.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia
>
If I keep the bank record which shows the exact amount (e.g. $200K)
being taken out from home equity account is transferred to the
mortgage account. Is it a good enough evidence to show the money is
indeed not used for other purpose?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Elle on March 28, 2008, 6:18 pm
Please log in for more thread options > Also, what document / evidence should I
> keep to fence off IRS if it challenges me on my deduction?
http://www.irs.gov/faqs/faq-kw96.html answers your question
and with IRS references.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by My interest on March 28, 2008, 8:51 pm
Please log in for more thread options >
> > Also, what document / evidence should I
> > keep to fence off IRS if it challenges me on my deduction?
>
> http://www.irs.gov/faqs/faq-kw96.htmlanswers your question
> and with IRS references.
>
Thanks. Are you referring to the point 3.6 on the IRS website? I
think my question, putting another way, is whether "paying down
mortgage" can be classified as "buy, build, or substantially improve
your home"?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Claim home warranty, alarm system, or credit card interest? | March 26, 2008, 12:18 pm |
| Second Home loan interest deduction | April 15, 2006, 3:18 am |
| Mortgage Interest Deduction: Lodger in Primary Home | September 23, 2007, 7:45 pm |
| Home office deduction for use in a passive activity such as a second home | February 25, 2007, 5:00 am |
| Include points in "interest paid on eligible mortage" for AMT (Line 4, Form 6251) | February 4, 2007, 2:05 am |
| Energy Star Home credit | October 27, 2006, 10:55 pm |
| Re: Mortgage interest on second home | July 1, 2006, 4:37 pm |
| Federal tuition credit or deduction? | February 27, 2007, 3:36 pm |
| question about line 75 - Amount of line 73 you want applied to your 2008 estimated tax | June 23, 2008, 6:31 pm |
| Re: Deducting accrued home mortgage interest | January 24, 2008, 8:30 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap