1) Since we don't have a home yet, what are the tax implications ? The cash that we will receive is it considered taxable income? Do we have to pay taxes? A LOAN is never taxable income.
2) Now that the home in texas has been refinanced at a lower interest rate, how do I update turbo tax so it know that it understands the changs that happened so I can deduct the right deduction? You will enter the mortgage interest but you will need to prorate it ... the HELOC portion going to the Sch A and the rental portion to the Sch E.
