Advice sought regarding car refinancing
Question: Do you own a home? If you do, you could apply for a Home Equity loan. >Then the interest would be tax deductable, and the rate would be at least >half what you are paying now. (snip)
Answer: Interest is tax deductible on MOST home equity loans, not all. There are several rules that probably won’t apply to many people here (e.g. if total of mortgages on first and second homes plus home equity loans exceeds $1 million, the interest deduction stops. Of course, your itemized deductions have phased out by that level of income anyway). However, you need to review the IRS regulations to ensure that you can qualify for the mortgage interest deduction if that is important to you. Probably the situation most likely to disqualify you is a 125% equity loan.
The IRS has a handy web site at: http://www.irs.ustreas.gov and I highly recommend the moderated tax discussion group (misc.taxes.moderated) for helpful answers to just about any question related to U.S. personal federal income taxes.
ObFrugal – Taxes: The IRS sponsors a program called Volunteer Income Tax Assistance (VITA for short) from February through April 15 every year. Trained volunteers assist lower income, elderly, and non-English speaking taxpayers with basic tax returns for FREE. The “lower income” part does not mean that you will be quizzed at the door about your annual income, just that the volunteers are trained heavily on Earned Income Credit and trained not at all on subjects like installment sale of a family business. If you are a CPA, the VITA refresher course and 20 hours of volunteering get you 8 hours of continuing professional education for FREE.
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