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Financial Planning / Tax Strategies
|Subject: Confirmation - quick questions||Date: 1/15/2013 5:42 PM|
|Author: JAFO31||Number: 117367 of 121338|
As I recall the rules, home equity loans not for purchase money or "remodeling" are only deductible up to 100K, and interest related to amounts borrower in excess of 100k are not deductible.
Do I understand the rule correctly?
Furthermore, I assume that tracing rules apply, so that if one borrowed more than 100k but the excess above 100k went into "remodeling", all of the interest would be deductible.
Is that further understanding correct?
Do soft costs for remodeling, design fees, permits, etc. (i.e., not costs for laor or materials for remodeling) satisfy the IRS for purposes of making the interest on the money borrowed therefor deductible?
What IRS publication deals with which expenses are permissible and those that are not?
Thanks in advance for any responses.
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