Home equity loan interest not qualify on Sch A

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Message Board Home equity loan interest not qualify on Sch A

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 2 months ago.

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  • #142345

    We have a question in regarding 2018 home equity loan interest deduction. We have a client who has home equity loan $100,000 is not for home improvement. Prior 2017, we did input the interest expense on Sch. A as an interest deduction. From 2018, we cannot deduct on Sch. A anymore. Can we classify as Investment Interest expenses, and deduct on Form 4952? The loan is actually for investing into another corporation. Would that be trigger any problem from IRS?

  • #142387
    Lynn Freer

    If you can trace the loan to the investment in the C corporation stock, I think it would be deductible as investment interest.