Can interest from HELOC be added to basis for investment property held for 16 months?

mgcorteville · ‎June 1, 2019

Investment house purchased 2017, sold 2018. HELOC held on primary residence. Did not live in or rent out investment property. Should depreciation be figured into cost basis? I'm using Premier Turbo Tax CD.

IreneS · ‎June 1, 2019

Yes to both questions.

Closing costs and interest on the HELOC are added to the basis of the property.

Depreciation is subtracted from the basis

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IreneS · ‎June 1, 2019

Yes to both questions.

Closing costs and interest on the HELOC are added to the basis of the property.

Depreciation is subtracted from the basis

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Can interest from HELOC be added to basis for investment property held for 16 months?