Thanks a lot for the detailed response. Please can you clarify. I have a couple of followup questions.
1. I am trying to understand the election to not treat as a secured debt. Is this because the Tax and Jobs act under Pres. Trump no longer allows general deductibility of HELOC interests and the only way to make it deductible towards rental property or CD investment is by making this election notice. And I am guessing this notice is just a notice I attach to tax return filing, correct?
2. When I file, would the HELOC interest paid in the 6 months when I have in CD be deductible towards other investments like stocks too. If the CD yield is less than the HELOC interest paid, could the extra interest be applied towards another stock investment income to reduce the tax on that income? Can extra negative interest payment carry over to the following year on the HELOC interest used towards CD?
3. Also trying to understand what you said about revoking the election only with IRS permission. So are you saying that if for instance I decide to use the HELOC to do upgrade on the same securing property. Is that an example of a scenario that might propmpt revoking the election?
