Prior to the recent tax law changes, taxpayers were allowed to deduct qualifying mortgage interest on loans up to $1 million, plus the interest on an additional $100,000 in home equity debt. The new tax law clearly limits the mortgage interest deduction to $750,000 worth of debt; however, treatment of home equity loan debt was more ambiguous. Many read the new law as eliminating the interest deduction altogether on home equity loans and lines of credit. Other tax professionals argue that the use of the loan proceeds is what matters........
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