@Opus 17
Hi, I would like to follow up on this with a related question: I am currently starting with a renovation and want to do a cash out refinance to pay for it. So I'll likely do the cash out refi in Nov'21 but the vast amount of expenses will occur through '22. If I understand you correctly as long as I say keep the money on a separate account and track what is spend when, i can deduct mortgage interest from taxes. So for 2022 that would make my tax filing a bit difficult since I will only have spend the whole cash out part at the end of the year. Example: if I spend half of the amount on January 1st I can deduct the interest for that half for the whole year, if I spend the rest at the end of June I can deduct interest for that for only half the year. For 2023 (when everything is spend) I can simply deduct all interest. Did I understand that correctly? Also, could you point me to the source of the 2 years? irs publication 936 sounded like only expenses occurred prior to refi count as acquisition debt. Thanks for clarifying this.
