Are Home Improvement Loans Tax Deductible?

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Home improvement loan interest is almost always tax deductible if the home is a primary residence. Consult with a tax attorney to work out the details of loan tax deductions with tips from a financial adviser in this free video on home loans.

Part of the Video Series: Credit Cards & Personal Loans
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Video Transcript

Hi, this is Matt McKillen, with Innovative Financial Group. Question posed to me today, are home loans tax deductible? If you take a home equity loan or a second mortgage on your property, or even your first mortgage, ninety nine percent of the time the interest, if it's your primary residence; now this means it's owner occupied. It's not an investment property. It's actually the home that you live in, and you may have filed your homestead on the property if it's a homestead state. In ninety nine percent of the time that interest is one hundred percent tax deductible even if the proceeds were used to consolidate debts, buy a vehicle, do home improvements, use it for tuition or education expenses. I always advise my clients, because everybody is different when it comes to how they're filing their taxes, is to actually consult or meet with your accountant, or your CPA, or your tax planner, and find out for sure what the total deductibility is on the interest. But again, nine times out of ten that interest that you're paying on your home mortgage or your home equity loan is tax deductible unlike the interest you may be paying on credit card debts, or personal loans, or your traditional automobile loans. Again, my name is Matt McKillen, and I'm with Innovative Financial Group.


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