Interest paid for HELOC

[Tolga Acar]

If HELOC funds have been used as down-payment for the purchase of a rental property, would the interest paid on HELOC be tax deductible?

[Andreas W.]

I am not an accountant but I am under the impression that it depends on what property you took the HELOC on. If you have the HELOC on your personal residence, then it is part of the itemized deductions if you have any. If the HELOC is on a rental property, then it is a business expense and part of schedule E. Again, I am not an accounted and I am happy to lean should I be wrong.