This is for my primary home. TurboTax counted the points I paid and the interest as deductable because I answered yes to the question that the cash out was for home improvement of my primary home (I only have one mortgage and one home). With contractor scheduling, I only got ~$6000 of the 50k spent in 2018. The rest will be spent by the end of this year. All the work is by licensed contractors with invoices and such, so documenting that I spent more than 50k on the house after the closing of the loan will be very easy.
I've held the money in a separate account since the refi, and every cent of what I got in cash, including the interest, will be spent on home improvement. I transfer money out of holding only to write milestone checks on the work. One project is done and the other is progressing.
However, some of the money was applied to loan costs at closing, so I got less than 50k in cash. My final spending will still be more than 50k. I don't know if that complicates things or not.
Is TurboTax right that the interest all counts and I can deduct the points as well since the money WILL be spent on home improvement? Or do I have to do something complicated and manual because I only spent part of the money in 2018?
