| The IRS clearly states that home equity loan's used for home improvements, would result in the deductibility of interest on those loans. In other words, the interest on these loans would be deductible on Schedule A under mortage interest along with the regular home mortgage interest.
The key fact here is that the improvements have be paid by the home equity loan itself. A home equity loan used for purposes other than home improvements is not a qualified expenditure and consequently per IRS rules this interest is not deductible. | 
