carolynm Posted August 6, 2020 Report Share Posted August 6, 2020 Client replaced entire property fence as required by HOA, cost $8000 in 2018. Obtained Heloc in early 2019. Can expenses incurred before HELOC origination be used as home improvements eligible for interest deduction? Quote Link to comment Share on other sites More sharing options...
Lee B Posted August 6, 2020 Report Share Posted August 6, 2020 yes Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted August 6, 2020 Report Share Posted August 6, 2020 Home ACQUISITION debt is deductible when use to purchase or improve a home. It doesn't matter whether the bank calls it a mortgage or a HELOC. This means we have to track the original mortgage balance through refi's because the interest on refi costs that are part of the new loan are not home acquisition debt. Quote Link to comment Share on other sites More sharing options...
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