Is interest on a transferred balance to a refinanced HELOC (which was all acquisition debt on the prior HELOC) tax deductible?

[mdlinsky]

Mortgage Interest Limits are not an issue here.  HELOC interest limits are not an issue.

The key here is that a HELOC was refinanced in 2014 AND THAT THE REFINANCED HELOC STARTED with a balance from the original HELOC.  So, the question is can the starting balance be treated as acquisition debt?  It would be acquisition debt if the original were still in effect. 

[TaxGuyBill · Accepted solution]

Yes.

As long as the loan amount is 100% from buying or improving the home, it tax deductible (up to the limits).  Refinancing does not change that.