Equitable owner/TJCA - Spidell

Equitable owner/TJCA

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Message Board Equitable owner/TJCA

This topic contains 1 reply, has 2 voices, and was last updated by William Dewberry 5 months, 1 week ago.

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  • #164979

    1)Taxpayer owns a primary residence.
    2)Taxpayer is also the equitable owner of a second home and pays all the expenses of a second home.
    3) In 2016, Taxpayer took out a home equity loan on the main home and used the proceeds to improve the second home for which she is the equitable owner. All mortgages are under $200K.
    4)Taxpayer did not live in the home in 2016, but moved into the home full -time in 2018 and as in the process of having the home put in her name.
    5)Can the taxpayer deduct the interest on the equity loan on Schedule A? 

  • #165027
    William Dewberry

    163 requires aquisition indebtedness be secured by such residence, so if residence is second home and debt is secured by first home, no.