Newbie Question: Taxpayer has a Home Equity Line of Credit (HELOC) on their paid off home. Do I complete a Form 4562? Not sure what to do!

[IRonMaN · Accepted solution]

You do nothing, unless the proceeds were used for improvements on the house.

[JJ_CaliforniaLove]

Thank you IRonMaN! I'll follow up with the client to see what they used the proceeds of the HELOC for.  If they did use them for home improvements in 2021, then what should my next step be?

[IRonMaN]

Then they would be eligible for mortgage interest on schedule A.

[JJ_CaliforniaLove]

Got it, thanks so much for your help!

[IRonMaN]

You betcha!