I used money from my home equity loan to pay off some of my personal debts. Can I deduct interest?
In some instances, it is possible for individuals to deduct the interest of such home equity loans on their state and federal taxes, which are, or at least should be, filed annually the Internal Revenue Service.
Despite the fact that the money can be used for reasons other than to buy, build or improve an individual’s place of residency or home, the debt for which the home equity loan is used may still allow the loan’s interest to qualify as home equity debt. No matter how the individual uses the money that they received as a home equity loan, the interest that is paid by the individual each year can be deducted on the individual’s taxes in an itemized list. However, there are limitations that have been placed on the individuals who do so when it comes to the amount of money they can deduct on their taxes in relation to the interest that they have paid on their home equity loans.
These interest amount limitations are based on the individual and are put in place regarding the amount of money the individual pays in interest on their home...