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URL:  http://boards.fool.com/quotalthough-home-improvement-loans-are-tax-13150345.aspx

Subject:  Re: 401k Loan and 125% LTV 2nd Date:  8/18/2000  5:44 PM
Author:  kaigun Number:  42296 of 308881

"Although home improvement loans are tax deductible, I was under the impression that one had to actually 'improve their house' to qualify for the deduction."

I believe that 2nds are tax deductible up to the appraised value of the house. (i.e. the last 25% of a 125% LTV would not be tax deductible) I do not believe that it is strictly limited to that portion actually spent on 'home improvement'. You might check out the IRS web site, or look through any tax preparation software you might have used last year, or cruise through TMF's tax discussion board.

Tom
Kaigun Chusa
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