Line 4 – Certain interest on a home mortgage

Enter home mortgage interest in which the proceeds were used for purposes other than buying, building, or improving your principal residence or a qualified dwelling that is your second home (see IRC Section 163(h)(3)). This may be all or part of the amount on Schedule CA (540), Part II, line 8a, line 8b, or line 8c (column A plus column C).

Example 1 : Gregory paid $950 interest on a $12,000 home equity loan used to buy a ski boat. He would enter $950 on line 4 because the proceeds were not used to buy, build, or improve his home.

Example 2 : Jackie paid $1,200 interest on a $15,000 home equity loan to install a swimming pool at her home. She would not make any entry on line 4 because the proceeds of the loan were used to improve her home.

Exception . Do not include interest on a mortgage you took out before July 1, 1982, if it was secured by property that was your main home or a qualified dwelling used by you or a member of your family at the time you took out the mortgage.