Question

How to enter interest itemization from Equity Credit Line Towards home purchase downpayment which is tax deductible

Forum|Forum|1 year ago
July 21, 2024
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Hi I bought a condo in july 2024 paying for the downpaymentsolelyby borrowing from an liquidity access line.

How do I enter this deduction inside Turbotax. The deductible interest is from interest paid on a downpayment borrowed against stocks (credit line) which was used for a home purchase downpayment.

The credit line has 8.9% interest and the amount borrowed is ~200k

DoninGA

Employee

Interest from the Liquidity Access Line is only deductible on a tax return as an itemized deduction reported on Schedule A if the funds were used for investment purposes and then only up to the amount of your net investment income.

Since the funds were used to purchase a personal residence and not for investment purposes, the interest paid is not deductible.

Only interest on loans that were secured by the personal residence would be deductible on a tax return.