Home Equity Loan

Menu Path: Deductions/Credits > Itemized Deductions > Homeowner Expenses (1098)

You can only deduct the interest expense for home equity loans and lines of credit if:

• the loans are secured by your home (or second home), and
• if the funds were used to buy, build, or substantially improve your home.

A home equity loan is part of your total deductible mortgage debt and is entered on the Homeowner Expenses screen.

You may need to limit your home mortgage interest based on when you took out the loan and the total amount.