covid delay on spending refi money on home improvement

We refied our mortgage in 2020 and took out $100k in equity to spend on home improvements.

The work was delayed until TBD due to Covid, so the money is just sitting in a savings account until then.

Since we are going to spend 100% of money out on improving the house but we didn't actually spend it in 2020 what do i say regarding how much of the refi is going towards home improvement??

Do i say 100% because it will be in the future or 0% because it wasn't spent in 2020??

posted

At present, none of the interest qualifies as acquisition debt because you have not used it yet to buy, build, or substantially improve your home, regardless of your plans. Whatever amounts you actually spend for improvements will become qualified debt at that time, as long as you pay for those improvements within 2 years of taking out the loan. If it is more than 2 years, then the debt never qualifies as acquisition debt.