When is Interest on Second Mortgages Considered Tax Deductible?

Types of Mortgages

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If home equity debt is taken on in a format which is considered origination indebtedness then interest on the loan may be considered tax deductible. In general things which qualify as origination indebtedness include money used to acquire, build, or substantially improve the primary residence that secures the loan.

IRS publication 936 explains how the home mortgage interest deduction works. It is important to keep your receipts on your improvement purchases in case you are audited. Please speak with your accountant if you have questions about what types of home improvements qualify. https://www.mortgagefirstdirect.net/post/is-now-a-good-time-to-consolidate-debt