WHEN IS INTEREST ON HOME IMPROVEMENT LOANS TAX DEDUCTIBLE? 1. THE IMPROVEMENTS MUST BE "SUBSTANTIAL."In order to deduct the interest on the mortgage as acquisition indebtedness, the IRS requires the project to be a "Substantial Improvement" that:
2. YOU HAVE A 24-MONTH LOOK-BACK PERIOD.If you are pulling cash out to reimburse yourself for improvements already made, those improvements must have occurred within the past 24 months in order to qualify for the acquisition indebtedness deduction. 3. YOU ONLY HAVE 90-DAYS AFTER WORK WAS COMPLETED.You must take out the mortgage or home improvement loan within 90 days after the work is completed in order to qualify for the tax deduction. The home acquisition debt is limited to the amount of the expenses incurred within the period beginning 24 months before the work is completed and ending on the date of the mortgage.
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Isaac Conde
305 West Moana Street Suite C Reno, NV 89509 775-553-8805 B.S. 0143661 ROI
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