Yes, the interest is deductible as mortgage interest on Schedule A - Itemized Deductions if this is the refinancing of your previous mortgage.If this is a home equity loan, the interest deductible may be reduced as the home equity loan is limited to the lower of: $100,000 ($50,000 if married filing separately), or The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home. Please read this IRS document for more information:https://www.irs.gov/publications/p936/ar02.html#en_US_2016_publink1000230008

Question

In 2016, we refinanced our house to consolidate debt. The house is being used as collateral. Is the interest on this loan deductible on our income tax?

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

No text available

TurboTax Premier Windows

M

MinhT1

Yes, the interest is deductible as mortgage interest on Schedule A - Itemized Deductions if this is the refinancing of your previous mortgage.

If this is a home equity loan, the interest deductible may be reduced as the home equity loan is limited to the lower of:

$100,000 ($50,000 if married filing separately), or
The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home.

Please read this IRS document for more information:

https://www.irs.gov/publications/p936/ar02.html#en_US_2016_publink1000230008

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"