HELOCs and deducting paid interest
Hey team, tax question: I know, moving forward for 2018, that HELOC interest is tax deductible IF, for example, the funds are used for improvements to a home. Does anyone know how the IRS would know/track that? For example, if you have a HELOC, and strip 50k of of it, does the IRS need receipts totalling 50k to be able to warrant tax-deductiblity for the use of those funds? Lastly, does this exception for home improvements extend to repairs/improvements made to 2nd homes and rental homes?