For regular tax purposes,a taxpayer may deduct interest expense on qualifying home equity indebtedness even if the taxpayer uses the loan proceeds for a purpose unrelated to the home.

Question

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According to the IRS, for regular tax purposes, a taxpayer may deduct interest expense on qualifying home equity indebtedness, even if the loan proceeds are used for a purpose unrelated to the home. However, beginning in 2018, the deduction for interest on home equity loans and lines of credit is suspended until 2026, unless the funds were used to buy, build, or substantially improve the taxpayer's home.

For Regular Tax Purposes,a Taxpayer May Deduct Interest Expense on Qualifying