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QUESTION DETAIL
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If a taxpayer is able to obtain a line of credit, but uses that to purchase only a home; can the interest paid on that line of credit be deducted on their schedule A? It is not secured by the home taxpayer purchased.
ANSWER
The BIDaWIZ Team's Answer:
The interest associated with an unsecured line of credit is not tax deductible. However, if the line of credit was converted into a home equity line of credit or HELOC, the interest would be deductible on line 10 of Schedule A. This is referenced in IRS Topic 505 and IRC Section 163.
