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November 3, 2024
Question

I have a heloc, do I pay taxes on the heloc draws?

  • November 3, 2024
  • 2 replies
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Do I pay taxes on a HELOC loan?

2 replies

Employee
November 3, 2024

No.   

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Employee
November 3, 2024

Money from a loan is not taxable income because you have promised to pay it back.  However, if you stop paying on the loan (declare bankruptcy, foreclosure, etc.) then anything you don't have to pay back does become taxable at that point, because you get to keep it.