denverslim
I have a primary residence and a piece of land. I am considering taking out a HELOC against my primary residence of $250K and using that money to build a new primary residence on the land, at which point I will sell the current primary residence and move into the new house. My question is - can I deduct the interest on the full $250K HELOC (rather than just deducting 100K of HELOC interest) since the monies are being used to fund a new primary residence? I am weighing this against just refinancing my current primary residence and using those funds to build, but the costs are high for the load size and term (will only be 8 months).