Line of Credit Interest Deductible ?

[jmallard]

Hi everyone,

I have a client with a statement from a bank for "Line of Cred - Variable Rate Plan". Shows a year to date interest paid. There was no 1098 from this bank.

Is this deductible as mortgage interest ?

Thanks

Jerry

[jasdlm]

Is it secured by real property? His primary residence or second home? How much is the principal on the line of credit?

[jmallard]

Is it secured by real property? His primary residence or second home? How much is the principal on the line of credit?

jasdlm

Thaks for the response.

Yes, the loan is secured by his primary residence and principal is $88,500.00.

Jerry

[Pacun]

jasdlm

Thaks for the response.

Yes, the loan is secured by his primary residence and principal is $88,500.00.

Jerry

Then it is deductible as long as they don't have more than $100K in equity debt.

[jmallard]

Then it is deductible as long as they don't have more than $100K in equity debt.

Pacun

Thanks for the information.

I just did't have time to track down the answer.

Jerry

[diligentbiz]

Deductible. I went through a client audit and it was confirmed deductible. Nowadays, some folks are living off social security and equity line. Hard to tell them they're belly up and waiting to be stepped on hard. Fact is, credit card interest is no longer deductible; equity interest is.