Question: Under new tax cut , can you write off interest payments for HELOCs?
Answer: Depends. The tax bill suspends the deduction for interest on home equity indebtedness. Thus, for taxable years from 2018-2025, taxpayer may not claim a deduction for interest on home equity indebtedness.
Interest on Home acquisition debt and can be deducted on Schedule A subject to loan limit. (750K under the new tax cut)
Home acquisition debt is a mortgage to buy, build, or substantially improve a qualified home (your main or second home). It also must be secured by that home.\
Home equity indebtedness is any debt secured by a qualified residence other than acquisition indebtedness.
Therefore, whether interest on HELOC is deductible or not on Sch A is depends on if the HELOC qualify as home acquisition debt or as home equity debt.
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