Congress cracked the whip on home equity interest tax deductions in 2018. Now, only loans used to buy, build or improve your home will be deductible. That means if you used a home equity loan to consolidate debt or fund a purchase that was not related to your home, you can no longer deduct the interest.
You might want to consider refinancing your home so you can roll the HELOC balance into a first mortgage to get the deduction for it. Keep in mind that refinancing is expensive, so make sure that this strategy works for your situation. Mortgage interest rates are also on the rise, so make this a priority if you think you need to refinance.
