roofing project

Forum|Forum|6 years ago
February 9, 2020
1 reply
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I had a new shingles , board etc done in my home and was completed in 2019. My question is do I enter the amount of the full loan amount ?

Opus 17

Employee

What loan?

You can deduct interest on a mortgage if the loan was used to buy, build, or substantially improve your home. To qualify, the loan must be secured against the home and perfected. This means it is written in such a way that if you stopped payment, your home could be foreclosed, and it is registered with the county clerk's office or wherever liens and mortgages are recorded in your state.

If you took out a personal loan or the roofer gave you a loan that is not secured by a lien on the property, it is not a mortgage and not deductible. If you took out a second mortgage or HELOC to pay for the work, then the interest qualifies to the extent it was used to buy, build or improve your home. So if you took out a $20,000 HELOC and used $15,000 for your roof and $5000 for something else, 75% of the interest would be deductible.