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Tax Deduction Consulting: Home Equity Deductions Brigham City UT

Home equity loan tax deductions, like all deductions having to do with mortgage interest are subject to some rather complex and frequently changing IRS regulations. Read and find out more.

Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

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H&R Block
(801) 495-4172
9151 S QUARRY BLVD
SANDY, UT

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H&R Block
(435) 462-2785
750 S STATE ST
MOUNT PLEASANT, UT

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Gardner Tax & Accounting
(435) 656-8291
32 E 100 S, STE 202
St. George, UT
 
H&R Block
(801) 546-3091
27 S FORT LN
LAYTON, UT

Data Provided by:
Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

Data Provided by:
H&R Block
(801) 262-0758
4871 S STATE ST
MURRAY, UT

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Liberty Tax Service
(866) 871-1040
438 E 12300 S
Draper, UT

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H&R Block
(801) 294-7998
75 E 2200 S
BOUNTIFUL, UT

Data Provided by:
SC ACCOUNTING TAX SERVICES LLC
(801) 652-8755
408 S 900 W SLC - UT 84116
SLC, UT
 
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Tax Deduction Consulting: Home Equity Deductions

Home Equity Loan Tax Deductions

Home equity loan tax deductions, like all deductions having to do with mortgage interest are subject to some rather complex and frequently changing IRS regulations.

In order to understand home equity loan tax deductions, it is necessary to be familiar with some basic IRS terminology concerning the ability to claim mortgage interest as an itemized deduction. The key date seems to be October 13, 1987. Mortgage loans for qualified homes that were taken out before this date are said to be "grandfathered" loans. Another term with which you must be familiar is "qualified" home. This usually refers to any home that is used as a primary or secondary residence. Homes that are purchased for investment and not used as a personal residence are treated differently.

Another IRS term is Fair Market Value, or FMV. This is an important figure for tax purposes for several reasons. The FMV is calculated in the same manner, substantially, as the assessment process for the securing of a mortgage. In other words, the selling price of similar homes in the same general area is used to establish the FMV of a home. Why this is important when you consider a home equity loan tax deduction is that the interest is deductible only on the portion of the loan that does push the total of your other mortgages or grandfathered mortgage over the FMV.

The interest on a home equity loan of up to $100,000 is deductible regardless of the how you use the proceeds of the loan. This means that you can take out a $100,000 home equity loan and use the money to pay off debts with much higher interest rates that do not allow you to deduct the interest. From a financial point of view, it would make sense to take out a home equity loan and use the money to pay cash for a new automobile. Since the interest on an automobile loan is not deductible, you would get the extra savings.

However, the catch is that you must actually have the equity in your home. If you have a home...

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