Is the interest on a HELOC deductible, since it was used to buy out the equity from my ex-wife, in order for her to sign the Warranty Deed over to exclusively me?

[liammaps]

I bought my main residence on 9/26/16 with a joint loan and joint warranty deed with my wife at the time.  We legally separated on 12/26/16, and she moved out of the house.  On 1/13/2017, I took out a HELOC loan for the sole purpose of buying out her half of the equity in the house.  In other words, I bought her out of the house, so she would sign over the Warranty Deed exclusively to me, making it only my house.

I did deduct HELOC interest in 2017.  In 2018 the tax law changed.  So, I want to know if buying out her interests qualifies as buying the home, in this phrase from your instructions.  The tax software interview said it's deductible only if the loan is used to buy, build, or substantially improve the home.  In my mind this qualifies as a yes, and is deductible, still for 2018.  

Do you agree?  Do I need to inquire of this with the IRS or a local CPA?

[ee-ea · Accepted solution]

In my mind this qualifies as a yes, and is deductible, still for 2018.  In my mind too

Do you agree?  Very much so

 Do I need to inquire of this with the IRS or a local CPA? Not at all