Is Home Equity Loan Interest Tax Deductible For Rental Property

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Is home equity loan interest tax deductible for rental property – It s not about mortgage interest or about 2017. Money kept in the bank is considered an investment at best you might be able to deduct the interest you pay on the money as investment interest.

But here is some fun fine print you probably weren t aware of.

Is home equity loan interest tax deductible for rental property – All the comments above are wrong. Your rental interest deduction begins only when you spend the money on your rental activity. Reading the answer i m not clear whether the interest on a home equity line of credit taken out on a rental property would continue to be deductible in 2018 under the new law. Is home equity loan interest tax deductible for rental property

The original answer above is correct you can deduct heloc interest against your home or your rental property business or other investments. You get no rental deduction for interest you pay on loan proceeds that you keep in the bank. Despite new provisions in the tax cut and jobs act the irs in a 2018 advisory memo stated that home equity loan interest may still be deductible along with interest on helocs and second mortgages. Is home equity loan interest tax deductible for rental property

The tracing rules apply. Limits to home equity loan amounts generally homeowners may deduct interest paid on heloc debt up to 100 000. Is home equity loan interest tax deductible for rental property

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