Hi @DavidS127 and @AmeliesUncle
Thank you for replying to my post and referring to the publication 936.
To give some concrete number, My primary loan was originated in 2013 so it is grandfathered to have a $1M loan limit for interest deduction, it is 765k.
My HELOC was setup in sept 2017. (before the new tax law)
The HELOC proceed 200k will be spend in 2020. (after the new tax law)
Could the HELOC proceed interest be allowed to deduct in full if HELOC+primary loan stay below $1M?
update: I read more on this publication 936, my HELOC use would be considered as home acquisition debt after 12/15/2017.
Using table 1 Part 1 to calc Qualified loan limit.
The table calc shows that HELOC proceed (home acquisition debt) incurred after 12/15/2017 does not get adds to the qualfied loan limit, is that correct? =(
Another thought is to refinance the primary+HELOC into 1 new primary loan (965K), could that allow me to deduct interest on this entire loan if it is still below $1M? (since the original loan is from 2013)
thanks so much for your thoughts/discussion.
Frank
