Posted by Wayne-NC on February 16, 2005 at 11:05:36:
That would be deducted on Sch A under interest deductions, not on the 1040 itself. Be sure to read the limits. Althought I don’t think that you will be near that now, but just be aware of them.
Home Equity Line Interest Deduction - Posted by VTKGS
Posted by VTKGS on February 01, 2005 at 07:24:40:
A couple lives in residence that is owned by mother. Mother, while not living in the home, pays all mortgage interest, real estate taxes, etc. The couple takes out a home equity line with local bank for improvements to the home. The couple is liable for payments on home equity line, has made all the payments to date, the equity line is secured by the home, and the mother has co-signed. The couple receives a 1098 at year-end.
Can the couple claim any of the home equity line interest as an itemized deduction? Thanks.
Re: Home Equity Line Interest Deduction - Posted by River City
Posted by River City on February 03, 2005 at 11:49:20:
Send an email to the IRS and ask them. They are very responsive.
Re: Home Equity Line Interest Deduction - Posted by Wayne-NC
Posted by Wayne-NC on February 02, 2005 at 08:14:22:
Interesting question. Who is on the deed? Only the mother? I tend to believe that the couple can take the deduction since they are on the HELOC as well as the property being their principle residence. 1098 info is furnished to the IRS in their name so all may be well. If not, just have the mother take the deduction and just furnish a check for the value of the actual taxes saved and it is a wash. Hope you get more of a difinitive answer from others. I will follow this one.
Re: Home Equity Line Interest Deduction - Posted by Charles
Posted by Charles on February 16, 2005 at 10:58:04:
Can I deduct a $399 interest payment on an equity line of credit on a 1040? If so, where on the form do I make the entry for deduction?