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Mortgage Interest Deduction on Gifted Home that was financed for first time

I had my house gifted to me. Then I took a loan on it. Turbo tax asks:
Let’s get some details about this loan

-This loan is a home equity line of credit (HELOC).

-This loan is a refinance of a previous loan.

-This loan is neither of these.

If i select

"-This loan is a refinance of a previous loan." it then asks if all the money from the loan went to the house.

In my case it is not a refinance, but I did do a cash out loan. So if i choose the option

"-This loan is neither of these."

then all the money is a tax deductible.

Which option should I choose

The loan you took would be considered a HELOC Home Equity Line Of Credit.

If the loan was not used to improve the home, the interest would not be claimed as a deduction.

If a portion was used to improve the house, such as building an addition, you will be asked to enter that amount when going through the interview.

It is a HELOC because you already owned the house when you took out the loan.

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