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Interest is tax deductible?

Posted on: 04th Oct, 2009 12:37 pm
I read an article online about the differences between home equity loans and equity lines of credit. at therefinanceunit.com, it mentioned that either way the interest on the equity loan is tax deductible.

Does this apply to all second mortgages or just equity loans? Does it have to be a property you aren't living in or is all mortgage interet deductible in the USA no matter what?
Yes that correct the interest is deducatbale. It is every staright forward when it coem to primary home

When it comes to second home, it would depnd on if you rent or just using it as secondhome

If you rent your second home, you have can deducte soem amoutn after you remove the incoem from the rent
Posted on: 04th Oct, 2009 12:45 pm
That's simply amazing. Anyone with a mortgage must get a huge amount of tax back, has it always been this way in the USA?

In other parts of the world you can deduct some interest on rented out properties but not your own home. Most peoples single bigest expense is their mortgage, and interest generally makes up the biggest part of that.

Why on earth would you rent? Once you take the tax break into account it's costing you a fortune more than owning your own home
Posted on: 04th Oct, 2009 01:08 pm
Its been like this for logest period of time

The tax break varies based on yoru income level

your last statement really does nto make much sense for me. Can you explain it please
Posted on: 04th Oct, 2009 01:19 pm
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