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Itemized Deductions Schedule-A


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Old 04-05-2007, 01:27 AM
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Is interest from credit card's deductible if funds used are for home improvement?

I borrowed funds from credit cards as a cash advance. Is the interest paid on these credit cards deductible if I used cash proceeds for home improvements?

In other words, can I deduct on my schedule A as interest expense?

Thanks...



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Old 04-06-2007, 12:31 PM
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In general, the IRS has specifically disallowed a deduction for credit card interest. If my memory serves me right this was allowed prior to 1990.

Generally speaking, interest on home equity loans used to make qualified home improvements are deductible on schedule A under interest. Therefore, one would assume that interest on credit card advances used for purposes of home improvements might be deductible!

But, the IRS disallows a deduction of interest on credit cards. This looks like a grey area, but I am inclined to say it is disallowed.

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