Hi!
This mortgage interest deduction limitation can be so frustrating at times. I believe I have the answer but I wanted to see what you all think.
If a client has equity in his personal residence and he has used up all of the 100,000 equity to pay off credit cards, cars, vacations, and other personal items and then he refinances and takes another 100,000 of equity in his house and invests in a 2nd home that is not used as a rental or for business, it is just a second home that they use once in a while is the interest non-deductible personal interest because the 2nd home is not secured by the debt? From what I read in the regs and pubs I believe it is non-deductible interest.
Thanks!
GTS1101
This mortgage interest deduction limitation can be so frustrating at times. I believe I have the answer but I wanted to see what you all think.
If a client has equity in his personal residence and he has used up all of the 100,000 equity to pay off credit cards, cars, vacations, and other personal items and then he refinances and takes another 100,000 of equity in his house and invests in a 2nd home that is not used as a rental or for business, it is just a second home that they use once in a while is the interest non-deductible personal interest because the 2nd home is not secured by the debt? From what I read in the regs and pubs I believe it is non-deductible interest.
Thanks!
GTS1101
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