The Tax Cuts and Jobs Act drastically changed the rules with regard to the deduction of interest on a home equity loan.
The Act applies for 8 tax years, beginning in 2018.
The law eliminates the itemized deduction for interest on home equity loans (second mortgages). The law applies regardless of the date that the debt was incurred.
Therefore, for example, if you took out a home equity loan in 2014, and are still paying off the loan, you lose the deduction for home equity mortgage debt interest. (Under prior law, interest on up to $100,000 in interest on home equity debt could be deducted as an itemized deduction).
Unfortunately, this can result in a tax increase for many middle income taxpayers. By eliminating a deduction, the government is increasing taxes.