Investor · Kokomo, IN · Member since 2015 · 40 posts · 11 votes
I read many posts on HELOC (Home equity line of credit) this and HELOC that but I want to know is the mindset for the use of HELOCs in 2018 and beyond. I read the tax law and my opinion is that a person can not claim the interest as a deduction for a HELOC in 2018 and beyond. If someone would point me to the post or help with their view and why.
Not really sure on tax implications on the HELOC. We just got a nice HELOC on our primary residence. So we have about 166k to work with.
I've kind of adopted the approach honestly to not bog myself in CPA type of considerations in terms of making decisions. Become informed, sure - but most tax considerations are 'on the margin' - we shoot for 15+% returns, sometimes as high as 40% and for us to do that, the tax considerations really don't affect the actual decisions, if that makes sense.
Hi Roger, you can continue to "trace" interest still. So if you use your HELOC for a business or a rental, the interest can be traced to the appropriate schedule. The tax law changed the deductibility of personal interest as reported on Schedule A, Itemized Deductions, hope this helps.