Notes, Taxes and Reporting
I used capital from a HELOC to purchase a note. Is the interest payments for that HELOC an expense I can deduct somewhere in my taxes? And if so, where?
To be honest, I think that would be a question for your CPA. Regardless of what anyone told me here on this forum, I would tell my CPA what I am doing and let him be the final word.
Course now the next question is, what is the quality of your CPA. Mine is an investor like myself, so he understands rentals, syndications, notes, etc.. There are a lot of CPAs out there that don't know jack about investing.