Thanks every one.

~Marty~

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Marty wrote:

- quote -

That is an excellent plan of attack, Marty, one I wouldn't
hesitate to recommend to a client. Trouble is, last year,
this married couple didn't ask me in time and they each got
one humongous 1099R form when their textile plant closed.

ChEAr$,
Harlan Lunsford, EA n LA

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Marty <big_ragu50[at]webtv.net> wrote:

- quote -

Yes. You don't have to prove anything to the bank for tax
purposes.

IIRC, interest on the first $100,000 is deductible. Above
that, it's deductible only if used for home improvement; you
have to prove that to the IRS if audited, the bank doesn't
care.

Seth

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"Marty" <big_ragu50[at]webtv.net> wrote:

- quote -

See IRS Publication 936 for information about the deduction
of HELOC interest, which was your only tax question.

--
Phil Marti
Clarksburg, MD

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Can a person apply for an equity line of credit to pay off a
401k loan if one loses his(her) job. The 401k loan is
already reality with 3 years left on the balance. Losing
the job could be in two months, two years, in between, or
never.

I know the key would be to take out the line before one
loses the job. Right? Are their any fees (upfront or
annual) involved if one ends up not using the line?

Is a Heloc tax deductable? Can a Home Equity loan work for
this purpose also? I thought you had to prove to the bank
that a home equity loan was for home improvement to get the
deduction. Am I wrong? Thanks

~Marty~

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >