Average of beginning + ending balance for the year. From Form 1098 Box 2.
From Form 1098 Box 1.
Only acquisition debt qualifies under TCJA. Cash-out for non-home purposes is treated as home equity debt - generally not deductible. IRC §163(h)(3)(B).
2
Second Mortgage / Home Equity (Optional)
Loan 2 - Second Mortgage or HELOC
Under TCJA, home equity debt used for purposes other than buying, building, or improving the home is not deductible, regardless of the loan origination date. IRS Notice 2018-32.
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