Taxes From A To Z (2018): L Is For Line Of Credit

Shutterstock It’s my annual “Taxes from A to Z” series! If you’re wondering whether you can claim home office expenses or whether to deduct a capital loss, you won’t want to miss a single letter. L is for Line of Credit. For 2017 (the tax year for which you’re currently filing your tax return), you can deduct qualifying home mortgage interest for purchases up to $1,000,000 ($500,000 if married filing separately) plus an additional $100,000 for equity debt ($50,000 if married filing separately). Typically, home mortgage interest is interest you pay on a loan secured by your qualified home (your primary residence, second home, or both). The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. A home can be a house, condominium, co-op, mobile or manufactured home, boat – even a yurt. A tent won’t do, however: To qualify as a home, the residence must provide basic living accommodations…

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