Thank you. That was it.
On Home the Home Mortgage Interest Worksheet I have one more question.
- Let's say that the cost basis of my home is 400k.
Over the years I have paid down the HELOC and put more improvements on it. For example,
- I put 50,000 on the HELOC for home improvements.
- I then paid off 25k of the HELOC.
- Next, I put another 50k on the HELOC for home improvements.
So now I have a balance of $75k on the HELOC.
The way I see it, the cost basis for my house is now 500k.
In order to achieve this though I need to have acquisition debt on my HELOC of 100k, even though the current balance is only 75K.
Is this correct?
