Home Remodel and Equity Line

I must be missing something obvious, but how do model out the scenario where we do a home addition/remodel in 2016 and finance it using an existing home equity line? The "first change of homes" screen does not seem appropriate, but putting the data in this year (as if it has been done) distorts the analysis. Thanks for any suggestions.
Fred

Comments

dan royer's picture

Special Expenditures/receipts is the way to go. When you draw on the line of credit enter a non-taxable receipt. When you make a payment, enter two expenditures, one deductible (interest) and one not (principal).

Am I thinking correctly here?

If you draw on 50K in 2016 but paid it back over 5 years, you'd have those expenses to indicate over the next five years.