Refinance Tax Trap
With the increase in home prices over the last decade a lot of people have taken out home equity loans or refinanced. What many people may not be aware of is if their new loan balance (primary and home equity combined) is more than $100K over their original loan amount (right before any refinancing), only the interest attributed to the lower amount is deductible.
Business week gives a nice overview of the problem and some examples.
This entry was posted by David on September 25, 2007 at 12:13 am, and is filed under Tax. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.