Business Tax Recovery Logo


Tax Deduction Consulting: Home Equity Deductions Buckhannon WV

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. Gregory R. Metcalf (RFC®), RFP
(307) 723-5018
200 Ivy St
Weirton, WV
Company
Horizon Financial Group
Qualifications
Education: Ohio University, BBA FinanceCollege for Financial Planning's CFP Certification Professional Education Program
Years of Experience: 15
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection

Data Provided by:
Liberty Tax Service
(866) 871-1040
128 Emily Dr
Clarksburg, WV

Data Provided by:
Penny Pinchers LLC
(304) 587-4005
Po Box 825
Clay, WV

Data Provided by:
H&R Block
(304) 643-4444
119 S PENN Ave
HARRISVILLE, WV

Data Provided by:
H&R Block
(304) 267-8261
307 W KING ST
MARTINSBURG, WV

Data Provided by:
Harold D. Vealey (RFC®), CLU, LUTCF
(304) 346-2154
910 Chester Road
Charleston, WV
Company
Vealey Financial Services
Qualifications
Education: BA
Years of Experience: 43
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, BuySell, Compensation Plans

Data Provided by:
H&R Block
(304) 265-2662
12 BLUE Ave
GRAFTON, WV

Data Provided by:
H&R Block Inside Food Lion Shopping Center
(304) 683-3017
834 ROBERT C BYRD DR
CRAB ORCHARD, WV

Data Provided by:
Himes, Thomas G
(304) 425-5119
600 Rogers St
Princeton, WV

Data Provided by:
Liberty Tax Service
(866) 871-1040
2001 Stadium Dr
Bluefield, WV

Data Provided by:
Data Provided by:

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...

Click here to read the rest of this article from BusinessTaxRecovery.com