Date: Sun, 10 Dec 2006 23:09:03 -0600
From: joetaxpayer 
Subject: Re: Logic on deciding which loan to pay off
Newsgroups: misc.invest.financial-plan
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zxcvbob wrote:
> 
> The point I was making is that HELOC A and B are not equivalent for 
> taxes, and A might be deductible even if B is not (which you and Mark 
> confirmed) -- then I made a fool of myself by mentioning the wrong tax 
> schedule :-)
> 
> Bob
> 

Not a fool at all. HELOC A is subject to his marginal rate regardless of 
itemizing as Schedule E has its own form and line on 1040. So paying 
down HELOC B which is the higher absolute rate anyway seems to be the 
popular response.
As you said, HELOC B may not be deductible, your observations are well 
noted.
JOE