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Updated over 6 years ago on .
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Used my HELOC to buy rental property. Is it tax deductible?
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

@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