The One Big Beautiful Bill Act (OBBBA) permanently eliminates the deduction for interest on home equity loans and lines of credit. Previously, this deduction was suspended through 2025. Interest remains deductible only on home acquisition debt, generally up to $750,000 ($375,000 if married filing separately), that’s secured by your home and used to buy, build or substantially improve that same home. Even if you use home equity loan proceeds for improvements, the interest is deductible only if the loan qualifies as acquisition debt. If you have questions about whether your loan qualifies as acquisition debt, contact us.
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