You are absolutely correct. Since none of the HELOC funds were used to buy, build, improve the home that secured the loan, then you cannot deduct the interest so there is no reason for any mention on your tax return. It is not income nor a deduction. You already have reviewed this, but here is the Publication 936 reference extract.
" Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan. The loan must be secured by the taxpayer’s main home or second home (qualified residence), and meet other requirements. "
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