Home Equity line of credit

[question everything]

Do I understand it correctly that the interest on these accounts will not be allowed on itemized deductions?

Saw a blip on a local editorial

[unblock]

1. correct.

i've not seen yet anything on whether or not existing helocs are grandfathered.

i'm guessing not, but i haven't seen anything one way or the other.

[elehhhhna]

3. Grandfathered.

But the limits on mortgage, state tax and property tax deductions combined with the elimination of virtually all other itemized deductions makes the point moot for most of us anyway.

[question everything]

7. What about those of us whose itemized deductions have been more than $24,000

thanks, mainly to long term insurance which is close to $9,000 for both of us?

Have they eliminated the itemized deductions?

[elehhhhna]

8. Pretty much.

Google that specifically though.

Hubs and I are screwed due to unreimbursed business expenses being wiped out.

[skylucy]

2. Good question. I saw the same thing somewhere...can't remember where. I hope someone

can provide info on this. If this is the case...There are going to be ALOT of pissed off people.

[exboyfil]

4. I am not sure the Republicans

have thought through the microeconomic decisions that will be driven by this tax plan. In addition to pruning some of the deductions, you will also move the threshold for itemizing from $12,700 to $24,000.

I think they will be surprised, and many of their voters will be as well, by having the number itemized deductions go from 30% to 10% of tax returns.

1. No longer tax deductible contributions to your church (this is immediately 12%/22%/24% less money available.
2. When you calculate that home purchase again the ongoing mortgage interest and property taxes will be 12% to 24% higher
3. As you indicated home improvements have gotten more expensive (both not being able to deduct interest and higher assessed value for property taxes).

[MichMan]

5. Many of the equity loans had nothing to do with homes

Being able to deduct home equity loans was logical when they were used for home improvements. The problem began when people started using them for everything else.

Adding to your mortgage obligation for things like Harley's, boats and vacations was never the intent and then being able to deduct the interest on your taxes was a loophole.

[question everything]

6. Well, I don't know about you. Our 30-yr old house has been needing updates and this is where

the Home Equity came through. New windows and carpets, sidewalk refacing cabinets.

We've never used it for anything else.

Many people chose to stay home rather than move, remodeling and updating them instead.