Thank you that makes sense.
I guess my confusion is how to properly classify the loan(s) in TurboTax Deluxe. Is there a help topic on this specific scenario? I have not been able to find anything specifically for second mortgages, only for HELOCs.
In summary, here is my situation:
Took out a fixed rate second mortgage in May 2019, paid $750 in fees.
Rates dropped significantly and refinanced this loan in July 2019, paid another $750 in fees.
There have been delays in remodeling the home so funds remain unused.
In Jan 2020 I used a small amount to help purchase a vehicle. Funds borrowed for vehicle were repaid.
More delays in remodeling because of the virus situation so funds remain unused.
Once I do start using the funds (over time, not all at once), how do I indicate in TurboTax the amount of money used for home improvement (interest is tax deductible) vs what is unused (interest on this portion not tax deductible)?
