It depends.
If you are using the proceeds from the HELOC to build a new home that you will reside in within 24 months and if the loan is taken out on the home that is being built, then yes, you can deduct the interest on your taxes on Schedule A if you are able to itemize your deductions.
If the loan was taken out as collateral on another home, then you would not be able to deduct the interest for the construction of the new home.
Please see IRS Publication 936 and can I deduct interest on a home equity loan or a HELOC for more details.
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