Is a Home Equity Loan Right for Me?
Taxes are becoming an ever-increasing burden to Americans.
Through the Tax Reform Act of 1986,
Congress reduced or eliminated many of the ways that taxpayers can lower their taxes.
Interest deduction is one of the areas...
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Is a Home Equity Loan Right for Me?
Taxes are becoming an ever-increasing burden to Americans.
Through the Tax Reform Act of 1986,
Congress reduced or eliminated many of the ways that taxpayers can lower their taxes.
Interest deduction is one of the areas that has been strongly affected by this tax reform legislation.
Since tax year 1991, interest on consumer debt has not been deductible for income tax purposes.
In order to minimize the impact of these limitations, it may prove advantageous for you to shift your
debt by means of a home equity loan — borrowing money using your home as collateral.
The law
allows your interest payments on these home equity loans to be fully deductible up to $100,000.
You are not even compelled to use the money for home improvements.
It may be used to clear
personal debts, to fund a college education, to pay medical expenses, or to purchase items on a cash
rather than a credit basis.
The real benefit to you is the deductibility of the interest paym
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