Subject: Home Improvement Loan Question
Date: Thu, 11 Mar 1999
From: Felisha Stelpflug
I am trying to find out... On a home improvement loan, can you deduct the interest paid, and if so, on what line of Schedule A?
Please help :-) Thank you!
Date: Sun, 21 Mar 1999
The interest for a home improvement loan is deductible provided the loan is for improving your principal residence and the loan is secured by your principal residence.
If this is the case, the interest that you paid is usually reported to you on Form 1098, and the interest is deducted on Schedule A, line 10.
If the interest is not reported on Form 1098, it probably means you borrowed the money from an individual. This interest is deducted on Schedule A, line 11.
If you have a question whether the interest you paid qualifies, see a tax consultant.
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised
that any written tax advice contained on this website was
not written or intended to be used (and cannot be used) by any
taxpayer for the purpose of avoiding penalties that may be
imposed under the U.S. Internal Revenue Code.