Heloc interest deductibility in California

[Onlyme24]

I have a client from CA who took out a $70k heloc and used it to pay her credit cards. Is the interest on the heloc tax deductible for CA since it was not used for home improvements? I know it’s not deductible for Federal but I’m not sure about California. 

[strongsilence]

Interest tracing.  It's one of the few cool things I know about taxes!

[TaxGuyBill]

I'm not a California preparer so I could be wrong, but it is my understanding that California still uses the 'old' federal rules, which included being able to deduct interest on up to $100,000 of non-home purchases.

[sjrcpa]

For regular tax, but not AMT. CA has its own AMT, too.

[TaxGuyBill]

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@sjrcpa wrote:

For regular tax, but not AMT. CA has its own AMT, too.

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That is good to know.  Thank you.

Yet another reason to avoid California tax returns.  🤣