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Tax, SDIRAs & Cost Segregation

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Paul C.
  • Atlanta, GA
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108
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Accounting question for HELOC

Paul C.
  • Atlanta, GA
Posted Jan 24 2020, 06:54

Hi, I use Tenant Cloud for all my properties and accounting and have a question about how I should allocate payments towards a HELOC. I have a HELOC on one property and used that money to put a down payment and renovate a duplex I purchased. I make payments towards the HELOC from the rent that I receive from my duplex. Should I be recording these payments like it is a loan against the duplex since that is what I used the money for or should I record them against the first property on which the HELOC was taken out? Or should I record them at all since most of the HELOC was used for capital improvements that I am depreciating over time?

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