How to payoff personal debt equity loan

richosasimohan · Joined: 18 Jul 2007 Posts: 38 23.01 Dollars($)

If a person took out a home equity loan to pay off personal debts. Is this interest deductible for Income Tax?

Guest 0.10 Dollars($)

A home equity loan taken out for purposes excepting buying or building a home or else to improve your home is usually considered as home equity debt. The interest on such a home equity debt is deductible as a form of itemized deduction.

adonis · Posted: Thu Jul 19, 2007 2:40 am Post subject:

Richo,

You can qualify for the deductions on an equity loan but for that you need to satisfy the following conditions:

Your equity loan must have taken after October 13, 1987.
It does not qualify as home acquisition debt.
The loan is secured by your primary home.

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