Question by gtmds: Are interests from a loan to update a roof tax deductible?
I live in Florida-US and am updating the old roof of my home with a completely new one before the next hurricane season. I assume that this won’t be a tax deductible expense if I pay for it directly, but would I be able to deduct interests of a home equity loan used towards this renovation?
Best answer:
Answer by supurdna
If you use a Home Equity loan the interest is tax deductible. The bank will send you a Form 1098 indicating how much interest you paid that yr. Also, HE loans can be used for more then just fixing up your house. You can roll in other debt, pay for college expenses, etc. Let the bank professional tell you more about it and g/l.
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http://www.irs.gov/publications/p936/ar02.html#d0e824
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hope this helps
good luck & bless
What about the energy efficient home credit? I don’t know if putting a roof on is a qualified energy efficient credit but, worth looking into.
The use of the money is not the determining factor. Interest on a home equity loan is deductible even if the money is used for a vacation. The deciding factor is that the loan is secured by your home. There are limits if your total loans is greater than $ 1 million, or if more than $ 100,000 is used for something other than buying, building, or improving your home. Unless you have a very expensive home, I doubt the limits apply.