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Is the interest deductible when you use a home equity loan to pay off a second mortgage?

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2011-09-13 05:26:27
2011-09-13 05:26:27

The interest on the second mortgage is deductible but not the home equity loan. If you could deduct the interest on the equity loan also, then you would be double dipping and the IRS doesn't like that. In every situation, one party can and the other party can deduct the interest. Someone has to pay tax on the money transfer.

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