I borrow money from my heloc to invest in a friend's flip. So I paid the interest on a monthly basis on my heloc in 2019 and 2020. I won't get the income until 2020.
Qn1) Where should I be claiming this transaction? business activities or interest and carrying charges?
Qn2) Can I accrue the interest I paid and claim it all in the year I receive the income? Or do I HAVE TO claim the interest paid on the heloc in 2019 and then the interest paid on the heloc in 2020? I don't have income room in 2019 so the claim of interest paid doesn't help me with taxes but would in 2020.
