All Forum Posts by: Jeff Smith

@Ashish Acharya Appreciate your guidance. 

Sorry the topic should be "Tax Deductible for HELOC INTEREST" from an Investment Property. Thanks

Hi BP friends,

I applied for a HELOC on my investment property, and I'd like to use it as contingency fund when I need to invest in another investment property in future. May I know if the interests from that HELOC is tax deductible? Can I just group the HELOC interest together with mortgage interest in that investment property?

I applied for HELOC on my investment property is because

(1) I have more equity in this investment property than my primary residence, and 

(2) due to recent change in tax law, HELOC from primary residence is only deductible when it's used for home improvement on that property, and I can't use it for other investment.

Thus I opted for HELOC on my investment property for my next deal, and get HELOC interest tax deductible on that investment property.

Is my strategy above makes sense? Welcome any suggestions as I'm preparing for my next investment deal. Thanks so much.