Tax Credit for Your Home Mortgage

These are few questions which are useful for home owners who own has home line of credit.

Is interest on a home equity line of credit deductible as a second mortgage?

You may deduct home equity debt interest, as an itemized deduction, if all the following conditions apply:
-You are legally liable to pay the interest
You pay the interest in the tax year
The debt is secured with your home
You do not exceed certain limitations

Is Home mortgage deductable

Second home. A second home is a home that be a mortgage to buy your home, a second ·

Is recorded or is otherwise perfected you choose to treat as your second home. mortgage, a line of credit, or a home equity loan.

under any state or local law that applies. You can deduct home mortgage interest if all

Second home not rented out.

the following conditions are met. a second home that you do not hold out for rent In other words, your mortgage is a secured or resale to others at any time during the year,

· You file Form 1040 and itemize deduc- debt if you put your home up as collateral to you can treat it as a qualified home. You do not tions on Schedule A (Form 1040). protect the interests of the lender. If you cannot have to use the home during the year. pay the debt, your home can then serve as · You are legally liable for the loan. payment to the lender to satisfy (pay) the debt. Second home rented out.