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Updated over 6 years ago on . Most recent reply presented by

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Stacy Kiley
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Used my HELOC to buy rental property. Is it tax deductible?

Stacy Kiley
Posted

Hello BP community! 

I recently used my home equity line from my personal residence to purchase a rental house. 

1. Can I use the interest as a tax deduction on my tax return? 

2. If yes then how do I know what portion of the HELOC is designated for the rental property as the loan gets paid down?

Most Popular Reply

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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
754
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1,407
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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
Replied
@Stacy Kiley Yes you can. Regarding deductible portion , you must follow the interest tracing rules. The portion used for business would be deductible under these rules
  • Lance Lvovsky
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