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Subject:  Re: Do you have a rational home equity policy? Date:  1/27/2005  12:39 AM
Author:  Mark0Young Number:  44215 of 94099

I didn't understand your post, specifically, "haven't refi-ed beyond the $100K limit for tax deductibility." Are you implying that interest is deductible for tax purposes only on RE loans of $100K or less? Such a limitation would make interest on most RE loans on properties on the east and west coasts non-deductible.

Nick was referring to home equity debt, which is indeed limited to up to $100,000 of the debt or all of the equity one currently has in one's home, whichever is less. This is a different animal from home acquisition debt, which is limited to $1,000,000 or the purchase price of the home, whichever is less.

See IRS Publication 936: Home Mortgage Interest Deduction:
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