My home is new construction, and I moved into it in 2019. My bank provided a construction loan for 80% of the estimated cost to construct. I paid the builder 20% when construction was underway, and then I began drawing construction loan payments from the bank. The cost to construct went over-budget, and the bank gave me a new (separate) unsecured loan that I used to cover the over-budget costs, and then the bank made the final construction loan payment to the builder. Then, after the builder was paid and the construction loan converted to a normal mortgage, the bank gave me a HELOC which I used to pay off the unsecured loan. I want to deduct the interest I paid to the unsecured loan. How do I do this?
