Can interest earned on a loan against a 401K for home improvements be counted as mortgage interest?
The home mortgage interest deduction is any interest you pay on a loan secured by your home. Since you borrowed using your 401K as the security, it is not deductible. For more details, see the attached link to the IRS pub. on Mortgage Interest Deductions.
Source(s):
http://www.irs.gov/pub/irs-pdf/p936.pdf...
No. Nor can interest on a loan taken specifically to BUY a home be counted as mortgage interest. Used to be able to do it but now you can't.
|
