Westfield Homeowners: Home Equity Debt vs Acquisition Debt
By Scott Gleason, CRS, Westfield NJ New Homes Specialist
(Coldwell Banker Realty)
As the deadline to file taxes looms near, Westfield homeowners look for ways to alleviate some of their tax burdens. Westfield home values have steadily risen over the last few years. Many Westfield homeowners took out a home equity loan for various projects and expenses. Did you? If so, you might be able to write off the interest paid on that loan. However, you'll need to know the difference between home equity debt and acquisition debt first. The IRS treats these loans very differently. Home Equity Debt vs Acquisition DebtHome Equity Debt When home values go up, Westfield homeowners utilize their newfound equity for a wide variety of reasons. One of your kids started college. Another one's getting married. You want to take a once-in-a-lifetime vacation. You're interested in starting a...
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