Home Mortgage Interest

[Burke]

I am working with an equity line type loan which is titled Mortgage Interest on the 1098 but it exceeds $100,000. Now, the rules state if it was used to buy, build or improve....etc... What I want to know is, would a new in-ground swimming pool behind the house, be considered an improvement to the house?

[S T]

Pub 523

See Pub 523 - under Adjusted Basis - Improvements page 9 it lists a Swimming pool under Lawn & Grounds. Special rules I believe apply if the improvement were for any type of disabled or medical expense.

http://www.irs.gov/pub/irs-pdf/p523.pdf

Sandy

[Burke]

Thanks. It was not for medical or disability purposes. But it didn't cost $180,000 either. There is a lot of other stuff in that equity line and we are going to have to do some documentation.

[JON]

Good Job

ST. Keep hanging around this board.. Please.

[taxea]

anything that increases the value of the property is an improvement.