We paid cash for our home in 2014 and later got a HELOC for 100K to cover renovations. In 2021, we retired and decided to put a conventional 1st mortgage on this home and pay off the balance on the prior HELOC in the process.
The money from the new mortgage was used to pay off the HELOC and purchase a new fifth-wheel (second home while traveling) and a super duty truck to tow with.
I have two 1098 forms. . . one for interest paid on the old HELOC which I believe is fully deductible and one for interest paid on our new conventional first mortgage in 2021.
Can't seem to work through whether the mortgage interest is deductible on the new first mortgage with certainty. Not sure how to answer the questions. Thanks for your help!
