Interest on home equity debt is fully deductible as long as the debt does not exceed
This is true that Interest on home equity debt is fully deductible as long as the debt does not exceed.
For example :- Let's say that we have taken home loan for $1.5 million and the limit is $1 million and the interest rate is 10%. So, the interest is coming to $(1.5million*10%) = 150,000. Now, we will be able to claim deduction only upto (1 million*10%) = $100,000 since the debt exceeds from the limit i.e. $100,000, hence we can claim interest only upto $100,000 as per this example.
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