David -
Thank you for your quick response. While my own logic is wanting to agree with your answer, I'm getting caught up on the BOLD/Underlined sentences in the 936 publication below. My two Lines of Credit were secured and unsecured, respectfully, based on my non-retirement investment assets and income - not the home, itself, being built. How do you square your answer with this guidance? I truly appreicate your help.
Publication 936 - Main Contents
Part I. Home Mortgage Interest
This part explains what you can deduct as home mortgage interest. It includes discussions on points and how to report deductible interest on your tax return.
Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, or a second mortgage.
You can’t deduct home mortgage interest unless the following conditions are met.
You file Form 1040 or 1040-SR and itemize deductions on Schedule A (Form 1040).
The mortgage is a secured debt on a qualified home in which you have an ownership interest. Secured Debt and Qualified Home are explained later.
Both you and the lender must intend that the loan be repaid.
Note. Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan. The loan must be secured by the taxpayer’s main home or second home (qualified residence), and meet other requirements.
