edb
New Member

home mortgage interest limitation smart worksheet

For home mortgage interest limitation smart worksheet, how is "loan proceeds? defined in relation to "Were all loan proceeds used to purchase, build or improve the home secured by this loan?

Critter
Level 15

Deductions & credits

When a loan is taken out it is used for something ... so your loan was used to buy, build or improve the home ?   If it was for none of those things then it is a HELOC which is no longer deductible.  If you refinance the loan then it takes on the same character as the original loan.  If you take out equity then the loan needs to be prorated so follow the program interview carefully.