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Tax Deduction Consulting: Home Equity Deductions Norfolk NE

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. Chris E. Nelson (RFC®), CFP
(308) 632-7587
1701 First Avenue
Scottsbluff, NE
Company
Valley Financial Planning
Qualifications
Education: University of Nebraska-LincolnThe Metropolitan State College of Denver, CO
Years of Experience: 16
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Education Plan, Compensation Plans

Data Provided by:
Mr. Frank C. Bogacz (RFC®), EA
(402) 551-3423
4715 S. 80th Street
Omaha, NE
Company
Bogacz Tax and Financial Services
Qualifications
Years of Experience: 22
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Long Term Care Insurance, Compensation Plans

Data Provided by:
Midwest Accounting & Tax Svc
(402) 334-2888
11629 Pacific St
Omaha, NE

Data Provided by:
Liberty Tax Service
(866) 871-1040
2700 Dakota Ave
South Sioux City, NE

Data Provided by:
Liberty Tax Service
(866) 871-1040
3504 Samson Way # 101
Bellevue, NE

Data Provided by:
Mr. Richard A. Strevey (RFC®), CFP
(402) 445-2288
14301 FNB Parkway #306
Omaha, NE
Company
Strevey Financial Services
Qualifications
Education: BS
Years of Experience: 34
Membership
IARFC, MDRT, FPA, NAIFA
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Mr. Scott C. Taylor (RFC®), CHFC, CLU
(402) 571-1505
7216 Graceland Drive
Omaha, NE
Company
Midwest Capital
Qualifications
Education: BBA, CLU, ChFC
Years of Experience: 28
Membership
IARFC, MDRT, SFSP, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Nebraska Tax Svc
(402) 614-4430
4824 S 24th St
Omaha, NE

Data Provided by:
Metro Business & Tax Svc
(402) 330-3655
254 N 114TH St
Omaha, NE

Data Provided by:
Jackson Hewitt
(402) 813-5488
4428 S. 24th Street
Omaha, NE

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...

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