Tax treatment - HELOC $ used for down payment on investment prop?

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I purchased couple of properties using my own money earlier this year. Funded my LLC and bought the properties.

Am thing thinking on drawing down on my available HELOC the same amount as my down payment.

What would be the tax treatment on interest paid on HELOC?

Any way I can deduct the interest?

Jay

@Jay N.

If you take the money out of the equity line of credit ( it is not called HELOC if it is not your home), there are few treatments.

1) If you invest the money taken out in the investment or other business, the interest is deductible in that business activity, not at you rental activity. Also Depends on how much you use, if you use 100% of LOC, you deduct 100%. If less than that, let's say 80%, you deduct 80%.

2) if you use the money for the personal purpose, it is not deducted. let's say you use remaining 20% from above eg on a car, you can't deduct that. 

3) if you hold the money at the bank that is your rentals bank account for future repairs and capex, it is deductible at the rental level. Most people will not do that because you will be paying interest on the money while doing nothing. 

@Ashish Acharya The Line of credit is for my primary home, hence HELOC. Plan on drawing down 50% of ths HELOC, move the money to my Rental LLC for investment. Can I deduct the interest on HELOC in this case? Jay
Originally posted by @Jay N. :
@Ashish Acharya

The Line of credit is for my primary home, hence HELOC. Plan on drawing down 50% of ths HELOC, move the money to my Rental LLC for investment.

Can I deduct the interest on HELOC in this case? Jay

 Yes, If you use for rental investment, it is.