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Subject:  increasing HELOC Date:  7/29/2005  9:39 AM
Author:  AlisonWonderland Number:  80153 of 132498

I'm considering increasing the line of credit we've had since '96 or '98. We're nearing the end of the payout period and our equity has grown quite a bit in the last 10 or so years. We've never used the entire amount, but we're looking at some much-needed remodeling.

I sort-of understand that there's a $100K limit for deductiblity of interest, and that there's also an AGI limit for deduction issues as well.

I'll look into getting the appropriate IRS pubs (936, and maybe 17, right?), but the resident "Pros from Dover" here on the board explain things so much more clearly.

If, for example, we get the HELOC increased to $150K, but use less than $100K, is all the interest deductible (within AGI limits, of course)? If we use more than $100K, is there deductiblity up to the $100K and limited deductibily over the $100K or maybe no interest is deductible over the $100K? I realize the whole question is moot if we keep the HELOC under $100K, but having access to more might meet certain needs.

Apologies if I'm not making sense, but I confuse easily.

TIA ~~ Alison
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