Hi. I saw the following information on "On Demand Tax Guidance (Turbo Tax premier, 2017)" in the Rental Expense section (Schedule E). Based on the wording below, it looks like the HELOC has to be secured against the equity in the rental property. I want to have a HELOC secured against my primary property and use to purchase and maintain a rental property. Can I still do that?
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Report Mortgage Interest
Enter the mortgage interest shown on Form(s) 1098 issued with your name and your Social Security number.
You may have more than one Form 1098, from different lenders, if you refinanced your first mortgage, or your mortgage was sold.
Include any interest from an equity loan or home equity line of credit (HELOC) secured on this property.
What is a home equity line of credit (HELOC)?
A home equity line of credit is a type of second mortgage that allows you to borrow against the equity in your rental property. You use the credit card or checkbook provided with the line of credit to purchase items as needed for your rental.
