Unfortunately, there is no grandfather clause regarding the "loan or line of credit must be used to buy, build or substantially improve your home" provision.
Unfortunately for taxpayers that already have home equity loans and HELOCs outstanding, the Trump tax reform did not grandfather the deduction of interest for existing loans. For example, if you took a home equity loan in 2016 for $20,000 and there is still a $10,000 balance on the loan, you will be able to deduct the interest that you paid in 2017 but beginning in 2018, the deduction will be lost if it does not qualify as “acquisition indebtedness”.
Unfortunately, there is no grandfather clause regarding the "loan or line of credit must be used to buy, build or substantially improve your home" provision.
Unfortunately for taxpayers that already have home equity loans and HELOCs outstanding, the Trump tax reform did not grandfather the deduction of interest for existing loans. For example, if you took a home equity loan in 2016 for $20,000 and there is still a $10,000 balance on the loan, you will be able to deduct the interest that you paid in 2017 but beginning in 2018, the deduction will be lost if it does not qualify as “acquisition indebtedness”.