☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Oct 25, 2023 10:20:08 AM

HELOC Interest

Hello,

 

I took a HELOC loan out for $175k back in 2022.  I used some of the funds to clear debt, but I also spent $100k on home improvements that I have receipts for.

 

From what I’ve read you are only allowed to deduct HELOC interest for funds that went towards home improvements.  Since I spent $100k of the $175k on home improvements, am I able to deduct the interest on the $100k portion of the loan (roughly 57%)?

 

Thank you

0 1 742
1 Best answer
Employee Tax Expert
Oct 25, 2023 11:14:35 AM

Hello Turner

 

You are correct the portion used for the home can be deducted as mortgage interest.

When you are entering the 1098 into TurboTax it will ask if it was a refinance, and how much was used on home improvements, The program will do all the calculations for you.

 

 

1 Replies
Employee Tax Expert
Oct 25, 2023 11:14:35 AM

Hello Turner

 

You are correct the portion used for the home can be deducted as mortgage interest.

When you are entering the 1098 into TurboTax it will ask if it was a refinance, and how much was used on home improvements, The program will do all the calculations for you.