Income tax is killing me. I have equity in my home. If I consolidate my credit cards and car loans into a home equity loan, will the interest payments I make be deductible?
Advertisements for home equity loans usually tell you to consult your tax adviser and for good reason. You may or may not be able to deduct the interest. This will vary based on your situation and the tax laws at the time. Home equity loans of up to $100,000 are generally deductible regardless of the use of the money. This means you may be able to pay off non-deductible credit card debt and car loans and gain the deduction you want. If you have borrowed more than your home is worth when you combine all the mortgages on it, only a portion of the interest will be deductible when you pay off those other debts. If the loan proceeds are used for home improvement, however, that could be treated as your first mortgage and it would be deductible. Please follow the advice on the ads you see, and do consult a tax professional first and/or the IRS. You might find it cheaper to borrow against something other than your home.
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Advertisements for home equity loans usually tell you to consult your tax adviser and for good reason. You may or may not be able to deduct the interest. This will vary based on your situation and the tax laws at the time. Home equity loans of up to $100,000 are generally deductible regardless of the use of the money. This means you may be able to pay off non-deductible 