VictoriaD75
Expert Alumni

Deductions & credits

HELOC interest is only deductible if the amount borrowed was used to buy, build, or substantially improve the home secured by the loan. For example, using HELOC proceeds to purchase a second home or pay off credit card debt disallows the interest from being deductible mortgage interest. 

 

However, using a HELOC to renovate a kitchen in the home securing the loan would make the interest qualify for the deduction.

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