So if you got a HEL back in 2005 and used it for whatever, since it didn't matter back then...now you need to go back and see how much was used over the years to improve the residence in order to decide how much is deductible?

That's how I understood it as well...but I cant find anything in writing anywhere!   I guess I can dig back through the book from the seminar I went to in Dec.

I'm arguing with my dad and he just keeps sending me all these links to articles published back last spring saying they are grandfathered in  LOL  He wont stop until I can show him otherwise!

If your dad happens to be a barber I would listen to him because we all know that is the source of the best tax information :smile:

Bwahahaha!! Good luck with, Dad, Lis.....I have arguments with my mom like this....either that or throw up your hands and tell him to go to H&R Block!! *Shudders*

My dad is retired and has nothing better to do all day than to research stuff  LOL  He and my mom don't even need to file a return anymore, I just mentioned to him about my current HEL situation and how it wasn't grandfathered in blah blah blah... and he hit the computer to prove me wrong!

But dads and clients are never wrong :wink:

:joy:

see pub 936- 2018. It will tell you everything you need to know. https://www.irs.gov/publications/p936

Thank you!  You rock!

My Wife asks her mom to research stuff all the time as she is retired too. My MOM????? She is 80 and refers to her tablet as "her facebook"...."Michael, grab me my facebook"......."Michael, do google, that google is a smart one".......

Nice @Terry53029

Dad - When all else fails, read the IRS Instructions https://www.irs.gov/pub/irs-pdf/i1040sca.pdf page A-8
"Limit for loan proceeds not used to buy, build, or substantially improve your home. You can only deduct home mortgage interest to the extent that the loan proceeds from your home mortgage are used to buy, build, or substantially improve the home securing the loan ("qualifying debt"). Make sure to check the box on line 8 if you had one or more home mortgages in 2018 with an outstanding balance and you didn't use all of the loan proceeds to buy, build, or substantially improve the home. The only exception to this limit is for loans taken out on or before October 13, 1987; the loan proceeds for these loans are treated as having been used to buy, build, or substantially improve the home. See Pub. 936 for more information about loans taken out on or before October 13, 1987."
Sorry Dad, but you need a new barber

@Just Lisa Now! Of course if HELOC loan funds are traceable to a biz or rental activity, it's deductible there

right, I was referring to residences  :+1:

"She is 80 and refers to her tablet as "her facebook"...."Michael, grab me my facebook"......."Michael, do google, that google is a smart one"....... "


LMAO!  I love her!

She does say some funny things! I try to track them. Plus English is not her first language. She is Finnish.:smile:

Then I'm guessing she is more a mojakka person than a lutefisk person.

@Terry53029  if you convert your comment to an Answer, Ive give it a vote...IRonMaN can tell you how to cash in those votes!