Suppose the only reason I "took cash out" was because the lender/escrow took longer to close than estimated and I had paid down my original loan further, creating a gap between my new loan and the payoff amount on the old loan. And suppose I did not specifically spend that extra money on anything specific. Could I claim that I spent that money on my first mortgage payment of the new loan and therefore claim I did spend the entire amount on my home?
Alternatively, if I made home improvements in a later year, under the new law can that qualify me to say that I spent all of that money on my home?
