Q. Is the interest on a home equity line of credit tax deductible?

A. Yes. You can deduct the interest you pay on your line of credit just like you would for any other mortgage.

The interest deduction from your home equity loan is not unlimited. You can generally deduct interest you pay on the first $100,000 of a home equity loan ($50,000 if married filing separately).

You can also deduct interest on two homes up to a total of $1 million in mortgage debt. In most cases you could also deduct the interest on your $100,000 equity loan in addition to the $1 million for a total of deductions on the interest paid on $1.1 million.