is a home improvement loan on a second home tax deductible?

If you're renting out that house, then you can deduct the home improvement costs (including loan interest) as a business expense. If it's just a second house for you, then no. The tax deductions only apply to your primary residence. You can shuffle money around by taking a home equity loan against the primary home, and use that for home improvements on the second home. The interest on the home equity loan is tax deductible (at least, as long as you're not taking out more money than the house is actually worth.) Sources: <a rel="nofollow" href="http://www.bankrate.com/brm/news/loan/19990203.asp">http://www.bankrate.com/brm/news/loan/19990203.  more