@NCperson @MarilynG1
It is clear that if I use entire HELOC portion for buying a new rental I can claim the interest on that 300K against rental income from that property. Is that the case even if I use entire 300K of HELOC to pay off the mortgage that I already have on rental property?
Does turbo tax takes care of the part that home acquisition debt is not reduced till HELOC is paid off? If my interest rate is 10% and home acquisition debt is 300K, my mortgage interest is 30K for that year. Did I get that right?
If mortgage interest is 30K, then whatever interest I have on 1098 - (minus) 30K is interest on HELOC. Did I get that right?
