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Interest on home equity debt is fully deductible as long as the debt DOES NOT exceed

Interest on home equity debt is fully deductible as long as the debt DOES NOT exceed

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For new amounts of acquisition indebtedness incurred after Dec. 15, 2017, taxpayers may treat only $750,000 of such indebtedness as eligible for the mortgage interest deduction. Acquisition indebtedness incurred on or before Dec. 15, 2017 remains subject to the former $1 million deductibility thresholds. Additionally, the deduction of interest on up to $100,000 of home equity indebtedness is disallowed for tax years beginning after Dec. 31, 2017, regardless of when such indebtedness is incurred. Because the determination of what constitutes home equity indebtedness is an exercise extending beyond the mere labelling of such loans as home equity, it is important to categorize it correctly in order to claim potentially deductible interest.

Therefore, Interest on home equity debt is fully deductible as long as the devt does not exceed $750,000.

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