[Yvonne570]

I work in real estate as a closer and known many who took out equity loans to fund personal items and got burned in the end along with our economy getting burned. Why would the IRS promote this?

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[yankeeaccountant]

Yvonne,

It is a matter of which came first, the chicken or the egg?

I feel like it was more of a change in the way people looked at how to use a Home Equity. Back in the day, it was not mainstream to use a home equity for anything other than for home improvements. Also to use a home equity to purchase another residence was not mainstream at all. I am sure the advent of the Tax Reform Act of 1986 which took away the deduction of personal interest had something to do with all of this too.

[Author]

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