You can't deduct all of the interest from a home equity loan (HELOC) if you used part of those proceeds to pay off a credit card, buy a boat, etc. For example, you borrow $20,000 against your home equity. $10,000 was used for home improvements. $5,000 was used to pay off a credit card and the other $5,000 to buy a boat.
Only the interest you paid on that first $10,000 is deductible.
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