| Getting your taxes done can be a huge hassle. But | | | | loan, or your mortgage. That kind of interest is in fact |
| while you are doing your taxes, you try to think of | | | | tax deductible. |
| every kind of thing you could get a deduction on. Of | | | | By transferring your credit card balance to your home |
| course, there are several things that are tax deductible. | | | | equity line of credit, you turn the money you owe on |
| But you have always wondered if your credit card | | | | your credit card into money that you owe on your |
| interest is. Can you really get something back from | | | | home. You will then pay interest only on your |
| you taxes by paying all that interest on your taxes? | | | | mortgage, and that, in fact, is tax deductible. |
| Sorry, but no. Unfortunately, unlike the interest you pay | | | | Warning: |
| on your mortgage, your credit card interest is not tax | | | | You could lose your home. That sounds a little |
| deductible. | | | | dramatic, but the chances that you could lose your |
| But there is a way you can make it tax deductible. Still, | | | | home increase if you transfer your credit card balance |
| there are some risks involved. | | | | to your home equity line of credit. |
| Whether or not the risk is worth it is completely up to | | | | Not necessarily just because you refinanced it to get |
| you. For you are the one who knows your | | | | your credit card balance transferred, but because it |
| circumstances. If you really want your credit card | | | | may take longer for you to pay off your home loan. |
| interest to be tax deductible, here is what you do. | | | | Because it would take you longer and make your |
| Refinance Your Home | | | | balance bigger, it may be difficult to make monthly |
| Sound absurd? If you are doing it just to get a tax | | | | payments in full and on time. |
| deduction on your credit card interest, it probably is. | | | | In my opinion, refinancing your home to get a tax |
| Getting a tax deduction on such a thing would be a | | | | deduction is definitely not the wisest thing to do. Better |
| small reward with high risk. If it is that important to you | | | | chances of keeping your home is way more important |
| though, refinancing your home can make your credit | | | | than getting money back from the interest you paid on |
| card interest tax deductible, in a way. It is possible for | | | | your credit card. To me, the risk is just too big to take. |
| you to refinance your home and transfer the balance | | | | Having a home loan is enough of a hassle and takes |
| on your credit card to your home loan. | | | | long enough to pay off as it is. If you extend that by |
| That way, you have basically paid off your credit card | | | | refinancing, it increases the risk that you will get your |
| and do not have to pay interest on it anymore. Now, | | | | house repossessed. The whole question is, "Is a tax |
| instead, you have more interest to pay on your home | | | | deduction worth that kind of risk? |