HELOC Interest No longer deductible ? What effect on Investors?

[John Wallace]

I Found this on a mortgage Calculator website, if this is true...

What would be our new strategy to counter the Thousands of Dollars in Interest payments we can no longer deduct ?

Understanding The Income Tax Implications Of Tap Home Equity

Prior to the passage of the Tax Cuts and Jobs Act of 2017 interest on up to $100,000 of second mortgage debt via home equity loans or HELOCs was tax deductible no matter how the money was used. The law changed how mortgage debt is treated based on how loan proceeds are used.

Home equity debt which is taken out to pay for things other than making substantial improvements to the home (which improve the basis of the home) is no longer tax deductible, as it is not considered acquisition indebtedness. If home equity debt is taken on in a format which is considered origination indebtedness then interest on the loan may be considered tax deductible. In general things which qualify as origination indebtedness include money used to acquire, build, or substantially improve the primary residence that secures the loan. It is important to keep your receipts on your improvement purchases in case you are audited. Please speak with your accountant if you have questions about what types of home improvements qualify.

IRS publication 936 explains how the home mortgage interest deduction works.