Updated over 7 years ago on .
Most recent reply
presented by
HELOC interest deductible?
If I use a HELOC on my primary residence to rehab houses that I don’t live in, is the interest still deductible in 2018? I understand that it is not. Any thoughts?
Most Popular Reply
Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
Tax & Financial Services
Pro Member
#2 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- Florida
- 3,401
- Votes |
- 4,480
- Posts
Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
Tax & Financial Services
Pro Member
#2 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- Florida
@Derek Scott , @Michael Masters is correct.
If you use HElCO for a business purpose, the interest is deductible as a business expense.
- So for rental, depending on when you are using the proceeds (before placing the house in service or after) determines if it is deductible right away, or needs to be added to the basis of the property and depreciated over time.
- For flips, it gets added to the basis of the property and decreases your taxable profit when sold.
Good luck.
- Ashish Acharya
- [email protected]
- 941-914-7779
INVESTOR FRIENDLY CPA®
226 Reviews
5.0 stars