You actually do need to do a calculation. The future home improvement costs are not deductible because you have not yet used it for the home improvement.
So the $44k or whatever the exact amount is, cannot be included in the mortgage amount for the deductible interest.
When asked "Have you used the money for this loan exclusively, you will need to say no.
Then you will enter the amount that has been used for the home. If your total balance is $450,000 and you have $44k sitting in the bank then the answer would be $406,000.
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