Home equity interest deductible?

[carolynm]

Client replaced entire property fence as required by HOA, cost $8000 in 2018.  Obtained Heloc in early 2019.  

Can expenses incurred before HELOC origination be used as home improvements eligible for interest deduction?

[Lee B]

yes

[Abby Normal]

Home ACQUISITION debt is deductible when use to purchase or improve a home. It doesn't matter whether the bank calls it a mortgage or a HELOC.

This means we have to track the original mortgage balance through refi's because the interest on refi costs that are part of the new loan are not home acquisition debt.