Hi --
Got a complicated HELOC tax deduction question. The internet research I've done doesnt seem to really align with our situation.
We currently reside in our primary residence since 2018.
We just bought a new home in April of this year and we are planning a major 10 month renovation starting early next year. In the meantime, we have some renters in there until construction starts.
We will move into our new home once construction finishes. At that time we will rent out our current primary residence.
We have a lot of equity in our current primary residence and are considering taking out a HELOC/equity loan to help pay for some of the construction costs in our new home. In that way, the funds would be used to "buy, build, or substantially improve [our] home.”
Question is -- once we eventually move out of our current primary residence (which would then have a primary loan and a HELOC loan attached), could we write off interest from the HELOC as a rental expense too?
