Equity Home Loans - Is the interest on $200k home equity loan used to buy a new primary residence deductible on Sch A.?

Is the interest on $200k home equity loan used to buy a new primary residence deductible on Sch A.?

We are planning to rent our existing home and pull $200k equity from that home to buy a new primary residence. I am not clear about the $100k deductible limit on the home-equity loans. Can I deduct it on Sch A or against the rental income and is the deductible equity loan capped at $100k. We file married jointly and our AGI is $160k.

Public Comments

I don't know where the first reply came from and I'm not knocking his intentions BUT.....I never thought it was allowed or a good idea to pursue business or advertisements on this website.... In any event, be forewarned as there are a million scams out there... Personally, with that amount of AGI, you surely must have a CPA do your books and tax returns.....if not, find a good one.....and let him advise you.....too important to leave it to a bunch of wannabee experts on this site..... IMHO
The loan is on the rental property, stupid move, as now you have full capital gains tax, but that is not your question. The interest is not applied to your primary home, but to your rental.