I have a HELOC secured against my home, opened back in 2014. On 1/1/2018, it had a $0 balance (was paid in full), but I borrowed money against it in 2018, so the ending balance was, say, $10,000. All of the money borrowed was for improvements to my home. However, filling out the worksheet results in seemingly incorrect calculations. It shows $0 borrowed in 2018 (line F.4) and $0 of acquisition debt. However, if I say I did NOT use all of the money to improve my home (line C), but then enter the full amount in the “amount used to…improve” (line C), it then attributes the ending balance to acquisition debt, and gives me the full value of the interest paid on the HELOC. Surely, “I used all of it for improvements” and “I used 100% of it for improvements” should be equivalent, but they result in different calculations.
