1 million for the first mortgage and home-equity debt combined.
The reason, said Rosica, a widely recognized expert on real estate tax law, is that although Section 11043 of the new tax law eliminated home-equity debt interest deductions, it left virtually untouched interest deductions for primary home mortgage debt ("acquisition indebtedness") that is used to buy, improve or construct a new home.
However, interest on home-equity debt is not deductible if the proceeds are used to purchase tax-exempt securities and is generally not deductible for alternative minimum tax (Sec.
The home-equity debt category represents an exception to the general rule provided in Temp.
Forgoing Home-Equity Debt Treatment to Maximize Interest Deductions
Student debt now exceeds aggregate auto loan, credit card and
home-equity debt balances a making student loans the second-largest debt of U.
While financial institutions may not be eager to provide home-equity lines of credit in the current environment, during the past several years the amount of
home-equity debt homeowners have layered on top of primary mortgages has risen to over $1 trillion.
Between mortgage financing and refinancing, along with increasing levels of
home-equity debt, many middle-income households are relying on their ongoing income to service a monthly mortgage.
Interest paid on other types of consumer loans is not tax deductible, but most homeowners can deduct interest on as much as $100,000 of
home-equity debt.
html) The Federal Reserve Bank of New York has come out with data that indicates student debt figures have exceeded aggregate auto loan, credit card, and
home-equity debt balances, becoming the second largest debt of U.
163(h)(2)(d), "qualified residence interest" (QRI) includes interest paid or accrued during the tax year on (1) acquisition debt on a taxpayer's qualified residence or (2) home-equity debt on a taxpayer's qualified residence.
163(h)(3)(C) defines home-equity debt as any debt (other than acquisition debt) secured by a qualified residence, to the extent it does not exceed the residence's fair market value reduced by any outstanding acquisition debt the residence secures.
