Sportsfan wrote:

- quote -

You're most welcome. I am sorry my response was actually pretty short,
as I am in the habit of citing a reliable source, to back up my info.

This is that source: http://www.irs.gov/pub/irs-pdf/p936.pdf

Knowing an answer off the top of my head doesn't let me off the hook.
When you pull up that IRS Pub, page 9 pretty much covers your situation,
and back up my original response that you were doubly covered as you
described your intentions.
JOE

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Thanks for the quick response. It appears I'll have no problem with
deducting interest.
Sportsfan

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Sportsfan wrote:
- quote -

You are borrowing only $30K over the current mortgage? And you're using
it for home improvement? You have no issue at all. It's all deductible.
Of course, the real benefit is only to the extent that this along with
state tax, if any, and properly tax (this is most people's itemized
deduction short list) exceed the standard education.
I hope you went fixed and got a good rate.
JOE
www.blog.joetaxpayer.com

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I'm planning to do a refi for about $120,000 and pull $30 or so in cash
back.
If I understand the new tax laws -- and I'm no expert-- $100,000 of home
equity can be used for anything and a deduction is allowed.
My total loan will be $120,000.
Does that mean that I'll be$20,000 over the limit and have to prorate my
mortgage interest deductions?
I"m planning to use the cash back for home improvements.
Just curious now. I"m seeing our accountant in a few days, but thought I'd
see if anyone had a clue so I can consider my planning.
Any thoughts or comments will be appreciated.

Thanks

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