Use a HELOC or Cash for new HVAC unit?
I just bought a rental property that needed a new HVAC system. Total cost for new unit (and AC) is $6500. I could pay that from cash in my checking account, or... I could use a HELOC from my primary residence.
I'm curious if anyone has an opinion, from a tax perspective, which is the better route? If I use the HELOC, I can deduct it (with new tax law i wouldn't be able to deduct HELOC if used on my own residence so maybe this is a good use for it), but if i pay cash then clearly i don't hurt my cash flow quite as much....
Most Popular Reply
@Jeff Duford
I would use the HELOC to pay for the HVAC System.
The interest is tax deductible.
It also allows you to save the cash for down-payment on another house or to have as an emergency fund.
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