HELOC "mostly" for the home

[Possi]

My client used "most of the HELOC" to make improvements on his home. How do I deal with that one? 

While I'm asking, if a client (because I know it's coming) refinanced their home, and the new loan is considered a home equity loan, is it completely deductible? 

 

[EricF]

You have to use the interest tracing rules.  If you refinance for a higher amount, you will need to know how to treat the additional borrowing.  The refinanced amount up to the amount of the old loan that was refinanced continues to be treated in accordance with what the old loan was used for.