Thank you!

I am sure that Kelly our tax guru can give a much better answer than this, but as I understand it, you can deduct the interest on a Home Equity Line of Credit up to $100,000 above acquisition indebtedness. That means the loan amount that you had when you purchased the property at it's current balance.

There is one exception: If you use the money for bona fide home improvements and can substantiate that, you can write off over $100k. I believe that the deductibility of home mortgage interest can be found in publication 936 of the Internal Revenue Code.

Of course you need to check with your tax professional to make sure that this is correct.