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posted Jun 4, 2019 7:30:10 PM

Why does the Home Mortgage Interest Worksheet show $0 acquisition debt on a HELOC when all of the money I borrowed in 2018 was for home improvements?

I have a HELOC secured against my home, opened back in 2014. On 1/1/2018, it had a $0 balance (was paid in full), but I borrowed money against it in 2018, so the ending balance was, say, $10,000. All of the money borrowed was for improvements to my home. However, filling out the worksheet results in seemingly incorrect calculations. It shows $0 borrowed in 2018 (line F.4) and $0 of acquisition debt. However, if I say I did NOT use all of the money to improve my home (line C), but then enter the full amount in the “amount used to…improve” (line C), it then attributes the ending balance to acquisition debt, and gives me the full value of the interest paid on the HELOC. Surely, “I used all of it for improvements” and “I used 100% of it for improvements” should be equivalent, but they result in different calculations.

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1 Replies
Level 2
Jun 4, 2019 7:30:12 PM

I had the same issue. Today a new update came out and it seems like I now get full credit for the HELOC interest for all of my home improvements.   Give it a try.