No, you can not deduct the interest on a HELOC if the proceeds were used to payoff the mortgage on an investment property. Starting in 2019 you can only deduct the interest paid on home equity proceeds to “buy, build or substantially improve a taxpayer’s home that secures the loan,” Ref: IRS
This rule went into effect for the 2018 tax year and was a big change from prior years, when you could deduct the interest regardless of what you used the money for.
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