Are interests from a loan to update a roof tax deductible?
gtmds asked:
I live in Florida-US and am updating the old roof of my home with a completely new one before the next hurricane season. I assume that this won’t be a tax deductible expense if I pay for it directly, but would I be able to deduct interests of a home equity loan used towards this renovation?
Douglas
I live in Florida-US and am updating the old roof of my home with a completely new one before the next hurricane season. I assume that this won’t be a tax deductible expense if I pay for it directly, but would I be able to deduct interests of a home equity loan used towards this renovation?
Douglas
March 14th, 2009 at 4:57 am
Gail
If you use a Home Equity loan the interest is tax deductible. The bank will send you a Form 1098 indicating how much interest you paid that yr. Also, HE loans can be used for more then just fixing up your house. You can roll in other debt, pay for college expenses, etc. Let the bank professional tell you more about it and g/l.
March 14th, 2009 at 1:56 pm
Gina
scroll down the page until you see writing.
hope this helps
good luck & bless
March 14th, 2009 at 10:30 pm
Marc
What about the energy efficient home credit? I don’t know if putting a roof on is a qualified energy efficient credit but, worth looking into.
March 16th, 2009 at 3:30 am
Courtney
The use of the money is not the determining factor. Interest on a home equity loan is deductible even if the money is used for a vacation. The deciding factor is that the loan is secured by your home. There are limits if your total loans is greater than $1 million, or if more than $100,000 is used for something other than buying, building, or improving your home. Unless you have a very expensive home, I doubt the limits apply.