The Best New Irs Rules For Home Equity Loans Ideas. 11 hours agoas a share of total real estate value in the country, home equity has risen along with home prices to currently hover at 70.5%—its highest level since 1984. However, if you instead took out a $250,000 home equity loan against your main home to buy the vacation home, the irs says the interest on the home equity loan does not qualify as home.
That's because that new loan is not. The 2017 tax legislation changed the rules, which may come as a surprise when you file your taxes this year. The irs bars the deduction of interest from home equity loans taken out on a primary residence if it's used to buy a vacation home.