Whether or not once more, the brand new devotion is based instead of the way the financing was prepared and you can distinguisheded, however, regarding how the borrowed funds proceeds can be used, and you may specifically, whether these are typically regularly acquire, build, or considerably improve no. 1 otherwise second quarters

In the course of time, the significance of such distinctions anywhere between focus on acquisition indebtedness in the place of home guarantee indebtedness isn’t really simply they’ve some other personal debt limitations to possess deductibility and various AMT treatment. It is you to, according to the Tax Slices and Operate Act from 2017, the acquisition indebtedness constraints was in fact less, and family security indebtedness will no longer getting deductible after all any further. Continue reading →