Date of Purchase is the date you bought the home
If you did a cash out refinance and none of the loan that you refinanced was not used to buy, build or substantially improve the home that secures the loan, you cannot take any type of mortgage interest deduction for that loan.
If you had a balance on your original home loan and you took cash out for something else, then only the interest on the portion of the loan that was used to buy, build or substantially improve your home can be deducted.
If you took cash out for any other purpose other than to build or improve your home, the interest on that portion of the loan is not tax deductible.
Example, you refinanced your home for $200,000. You took $50,000 out to buy a truck and $50,000 out to pay off credit card and other debt. Your previous loan balance from buying the house was $75,000 and you are using $25,000 to remodel your kitchen. The $75,000 is considered the amount used to purchase your home, the $25,000 is to improve your home so the interest on the $100,000 used to purchase and improve your home is tax deductible. The interest on the $100,000 used to pay off debt and buy a truck is not deductible.
TurboTax will do the calculations for prorating the interest, but you will need to enter the amount that was used to buy, build or improve your home.
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