This means that you can only deduct mortgage interest when you’re using the loan to do work on the same house that is securing the loan. The loan must be secured – meaning the lender has a guarantee of payment – by the property that the improvements will be used for.
If you use part of the loan to pay for things other than the home that’s securing the loan, you cannot deduct the interest.
Examples of common ways you might have use the money for things other than are:
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Making a down payment on a different home
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Funding improvements on a different home
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Making a payment on a different loan or debt
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Having miscellaneous large purchases
Please see the TurboTax Help article Can I deduct my mortgage? for more information.
