Yes, Interest on Home Equity Loans is Deductible Still

5 Mar

Yes, Interest on Home Equity Loans is Deductible Still

There’s been confusion because the big tax law was enacted on the deductibility of interest on home equity loans. NAR has been saying that the interest is deductible for the portion of the loan that&rsquo still;s useful for home repairs, renovations, and additions. And that’s the right interpretation, based on the IRS. In regards to a week . 5 ago the agency confirmed that in a memo.

The right section of the loan that’ s applied to the homely house to repair something or improve it remains deductible beneath the new tax law. Loan proceeds which are useful for personal bills or anything not linked to improving the home isn’t deductible.

The clarification is viewed in the most recent Voice for Real Estate news video from NAR.

The video also talks about a significant vote in the homely house on so-called drive-by lawsuits. They are lawsuits filed by those who are using accessibility requirements beneath the Americans with Disabilities Act to extract fees from small home owners. Folks are sending letters to home owners alleging they will have an ADA violation and threatening case unless the dog owner reaches funds with them. The individual sending the letter typically doesn’t say what the alleged violation is even. The only method the owner will get out is by visiting court. Most owners find yourself settling because the cheaper alternative and when there is ever any violation the dog owner never realizes what it really is.

The House passed a bill requiring individuals who send these letters to recognize what the alleged violation is also to give owners an opportunity to correct the issue before taking them to court. It’s a remedy that addresses an obvious abuse of a significant NAR and law supported its passage. The bill needs to be adopted in the Senate still.

Other topics in the video include NAR’s Commitment to Excellence initiative, later this season that will roll out, to provide NAR members an opportunity to voluntarily assess how well they perform on key areas of their business, including technology, the Code of Ethics, and the forms and contracts they use.

The video gives an update on home sales&mdash also;they’this season re off to a slow start, due to inventory shortages in lots of markets mainly, among lower-cost starter homes&mdash especially;and what’s happening in commercial property. Briefly, transaction volume on small cap properties does okay but volume on large cap properties is slowing.

Watch and share video.