HELOC: Is interest deductible on primary residence?
Hi
I live in California. I took out a HELOC on my primary residence and used the funds as a deposit on another property which then became my primary residence. The previous primary residence was converted into a rental property and a lien was recorded against that rental property for the HELOC.
At tax time, can I attribute the HELOC interest to my primary residence and claim the deduction?
TIA
KIWI
Most Popular Reply
Yes. At tax time the interest on you HELOC is tax deductible. I have funded lots of deals with my HELOC. Once I have acquired a property I start paying down my line of credit so it is available to me again if needed. At the end of the year my bank sends me a form stating how much interest I paid on the HELOC and then I give it to my tax guy. Hope this helps.