Used HELOC for repair, how do i deduct on taxes?

Member since 2018 · 15 posts · 4 votes

I used a heloc from my personal property to pay for a new hvac unit in a rental. in my upcoming taxes do i deduct the entire cost of the hvac or just what ive paid for it thus far out of the heloc?

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
The financing of an item is irrelevant....it was bought/paid for. The hvac will be added to your depreciation schedule, not written off all at once.
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
7y
@Jeff Duford , You dont have to add to the basis of the property if the expense was below 2500 and the entire amount can be deducted. Also, the interest related to the portion of the HELOC used to get HVAC can possibly be deducted in your schedule E as a business expense. Need more detail on that such as if you have an entity or not.
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