Please tell me Low Interest Home Equity
I apologize if this is too elementary, but, I'd like to know
what the restrictions or rules are in using a home equity
loan to buy a vehicle and deducting the interest from my
taxes. Also, if there is another way to finance a car that
would be more advantageous, I'd like to hear about that too.
I am not a company or corporation, just a regular individual
(i.e. I don't have a company to lease the vehicle to and
then resell it to myself at lease-end).
Only if you could get a low interest loan, might you be
better off taking it than using a home equity loan.
Personal interest is not deductible. Home equity interest
is generally deductible. However there is a limit on the
amount of debt that can be treated as home equity debt.
The total home equity debt on your main home and
second home is limited to the smaller of:
$100,000 ($50,000 if married filing separately), or
The total of each home's fair market value (FMV) reduced
(but not below zero) by the amount of its home acquisition
debt and grandfathered debt. Determine the FMV and the
outstanding home acquisition and grandfathered debt for
each home on the date that the last debt was secured by
the home.