Can the interest/payment on a home equity loan be deducted as home office expense, the same a home mortgage ?

chicki3030 asked:


I have been asked to set a home office for my employer’s benefit. I will work from home on daily basis. I know I can deduct a portion of my mortgage payment and utlilties from my taxes, but can I deducted my home equity loan payments? Should I consolidate both loans to get the total tax benefit?

Caffeinated Content for WordPress

Share and Enjoy:

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

2 Responses to “Can the interest/payment on a home equity loan be deducted as home office expense, the same a home mortgage ?”

1. DillyDallyLama Says:
   September 18th, 2008 at 12:22 am

   Mmmh I’ve noted that thanks.

   BTW I’m the Tax Man (or my friends call me Lucifer).

2. waggy_33 Says:
   September 18th, 2008 at 1:34 am

   Interest paid on a home equity loan is deductible as mortgage interest as long as the home equity loan is not greater than $100,000. If such a loan exceeds $100,000 then you would have to trace what the funds were used for to seen if any additional interest is deductible.
   Interest paid on a home equity line of $100,000 or less is deductible on schedule a as mortgage interest but it is not deductible when you are computing alternative minimum tax.
   Mortgage interest is defined as a loan obtained to purchase, construct or improve a personal residence plus a home equity loan of no more than $100,000. The overall limit on such loans is $1,000,000 plus the $100,000.

Leave a Reply