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nkpug
New Member

What does "The loan or line of credit must be used to buy" mean in regards to HELOC interest deduction?

I'm trying to understand how you can use a HELOC to "buy" the home that secures that loan. In trying to answer this question, "Since you first took out the loan, how much has been spent to buy, improve or build the home it's secured by?", can I include money taken from my HELOC and used to make the mortgage payment for this same home?

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nkpug
New Member

What does "The loan or line of credit must be used to buy" mean in regards to HELOC interest deduction?

I found a similar question and answer online. It seems that using the funds from a HELOC to pay the mortgage payment for the same property that secures the HELOC falls under the "buy" part of "buy, improve or build".  Here's the link:  https://www.justanswer.com/tax/9em9g-i-m-using-home-equity-loans-following-1-paying.html

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