topic If I installed a PV system in 2019 using a loan w/ 0% interest for 12 months and then moved the remaining loan balance to a HELOC, could I deduct the HELOC interest? in Deductions & credits

If I installed a PV system in 2019 using a loan w/ 0% interest for 12 months and then moved the remaining loan balance to a HELOC, could I deduct the HELOC interest?

mikelauren2010 — Wed, 25 Nov 2020 21:19:03 GMT

Re: If I installed a PV system in 2019 using a loan w/ 0% interest for 12 months and then moved the remaining loan balance to a HELOC, could I deduct the HELOC interest?

Critter-3 — Wed, 25 Nov 2020 22:51:34 GMT

No ... this was not to buy, build or improve the home. You bought a PV system you can move to a different property and it is not an improvement to the home ... it is like a car ... when you sell the home it can go with you.

Re: If I installed a PV system in 2019 using a loan w/ 0% interest for 12 months and then moved the remaining loan balance to a HELOC, could I deduct the HELOC interest?

Opus 17 — Thu, 26 Nov 2020 00:47:17 GMT

Even if we assume that the solar system is a substantial improvement to the home, it does not qualify as “acquisition debt” for purposes of the mortgage interest deduction because it would have to have been added to the mortgage within 90 days and you waited too long.