Question # 1: During refinance at January 2018 First Load with HELOC has been consolidated plus cash out.
Ex: $400K (First Loan) + $50K (HELOC) + $50K (cash out). Total New Loan - $500K
According to new IRS rules interest on cash-out not tax deductible if money have not been used for home improvements, but what about portion of HELOC? (First loan originally was $450K)
Question # 2: Same loan $500k has been refinanced again in November 2018 for exactly same amount $500k, would interest on $500K be tax deductible, or new loan still inherit all limitation from previous loan from question # 1 or limited to the original loan amount $450K?
Thank you
