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Updated over 6 years ago on .
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Taking out HELOC on Prim. Residence to buy Inv. Property
Hello,
I know there were similar questions already asked, but I would like to ask this specifically:
1/ Can use HELOC from my primary residence to buy an investment property and be able to deduct HELOC interest as business expenses?
2/ Will I need to follow any special guidelines to be able to show the IRS that the money that I used for the investment property purchase really is the money from HELOC? (for example, not to commingle or the way it travels or the timing of the transactions,...)
Thanks,
Marcel
Most Popular Reply

@Marcel Lorincz
Yes.
Under interest tracing rules, the interest traced to an investment property is deductible. Consult with your cpa.