Home mortgage interst deduction?

[Kram BergGold]

In the area where I live, we have had almost continuous appreciation of homes since 1987. Now with the downturn in home prices what do I have to look out for with home equity loan interest? Is three a difference between someone who took out home equity 5 years ago on a highly appreciated home versus now?

[taxea]

Home mortgage interst deduction?

You'll have to research the current tax law and be aware of any changes in it before filing.taxea

[veritas]

Excellent question

In the area where I live, we have had almost continuous appreciation of homes since 1987. Now with the downturn in home prices what do I have to look out for with home equity loan interest? Is three a difference between someone who took out home equity 5 years ago on a highly appreciated home versus now?

The rules are the home equity indebtedness can not exceed the fmv less the original aquisition debt in order for the interest to be deductible.

So do we have to look at the fmv every time a payment was made during the year?

[solomon]

The rules are the home equity indebtedness can not exceed the fmv less the original aquisition debt in order for the interest to be deductible.

So do we have to look at the fmv every time a payment was made during the year?

I assume that applies only at the time of obtaining the home equity loan.

[veritas]

I hope

I assume that applies only at the time of obtaining the home equity loan.

so.........