Compare Home Equity Loan Rates! Can you still deduct interest on HELOC? Is the interest on HELOC tax deductible?
However, the interest on HELOC money used for capital improvements to a home is still tax-deductible , as long as it falls within the home loan debt limit. Dates are important here, too. Gendreau says residence loans (i.e., home equity loans, HELOCs and mortgages).
This can include major repairs and renovations, such as replacing the roof, carpeting, or components, such as the furnace,. But the tax aspects of either option are more complicated than they used to be. The only tax consequence is the deduction for home mortgage interest.
In order to claim the deduction, the person must be both legally liable for the debt, and making the payments. This means your parents would get the deduction, and you. The purchase price plus the costs of the improvements is your. You might want to get something signed between the two of you as to what and why you are doing this.
Quitclaim deeds are a legal document in the state of California. There are no restrictions on what you use your home equity loan for.