bandb
Level 3

Taxpayer's parents lent $100,000 in order that taxpayer could buy a home. One yea later, taxpayer's home has appreciated and he has taken out a HELOC to repay the loan. HELOC interest is deductible only to  buy, build. or improve your home. Can the taxpayer deduct the HELOC interest, since technically, it falls under the allowability rules,

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