I ran into something similar when refinancing last year—used most of the funds for new windows, but ended up paying off some old credit card debt too. My accountant had me separating interest as well...did anyone find an easier way around this?
Went through something similar a couple years back—refinanced to fund a kitchen remodel but ended up using part of it to clear some lingering student loans. My accountant was pretty firm about splitting interest too. Honestly, I dug around for simpler solutions, but the IRS guidelines seemed pretty clear-cut on separating deductible vs. non-deductible interest. Bit of a hassle, but probably safer to stick with the accountant's advice...
Went through a similar headache last year. Thought I'd be smart and use my home equity loan partly for a bathroom upgrade and partly to finally ditch some credit card debt hanging over me since college days. Turns out the IRS doesn't love mixing deductible and non-deductible stuff—who knew, right? My tax guy gave me that stern-but-friendly look (you know the one), so I ended up just biting the bullet and splitting it like he said. Better safe than sorry, I guess...
Yeah, IRS rules can be a real maze sometimes. Had a client last year who thought he could lump everything together too—new kitchen, debt payoff, even a family vacation (don't ask). Tax guy set him straight pretty quick. Splitting it up was definitely the right call on your part, even if it's annoying. Better to deal with the hassle upfront than get hit with penalties later...
Definitely agree it's better to sort it out upfront—I've seen friends get tangled up later, and it's not pretty. Curious though, has anyone here successfully claimed deductions for home improvements like solar panels or energy-efficient upgrades? Heard mixed things about that...
