HELOC interest deduction 2018

By the end of 2018 i owed around 50k on my HELOC and paid around 2500 in interest. Much of the balance is from home improvement work i have done over a number of years, but only a 2200 new furnace was actually spent in 2018. how much of the interest is deductible? And how do i determine the proper amount?

posted

You will have to calculate the amount of 2018 interest attributable to the furnace if this was your only home improvement. Find a ratio of furnace expense to total home equity debt. Then apply the ratio to your total interest for the year.

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