Interest on loan for HELOC
I am curious if this community knows if the interest on a HELOC loan can be deducted on my tax filings if I use it to purchase property m- or is it only tax deductible if I use the money for my primary residence?
As usual check with your tax advisor. Typically, yes, it would be deductible on a new investment purchase. May not be deductible if you use it to buy a $20k couch for your primary residence
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- Investor
- Virginia
@Olivia Lovely
According to the link below, it’s only deductible if it’s used on the property the heloc is held on
So if you have a heloc on your primary residence and use the funds as a down payment on another property the interest is not tax deductible is how I interpret it
As always speak to your tax advisor
https://www.investopedia.com/mortgage/heloc/tax-deductible/
Don't think so. I asked my CPA and it was a No. using a HELOC from a primary for investment was a no.
To my knowledge it is deductible as long as you can trace the use of the loan money. Where the confusion exists is that you can not deduct it as a a mortgage expense of your principal residence (personal itemized deduction). However, the interest will be entered as investment/business expense in the same location (schedule C/E..) where you entered your investment/business income.