Reply #5: i think it's deductible as long as total mortage debt is under home value

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if your debt exceeds the value of the house, and you use it for other than home improvement or home purchase, then there may be restrictions. on the other hand, if he can clearly tie the home equity loan to payments to his ex for PURCHASE of her share of the house, then i think he's ok regardless.

of course there also a $1,000,000 cap on mortgage interest, but i'm guessing that doesn't apply.

(i'm have no tax license, take it for what it's worth)