Deducting HELOC Interest for Rental Property

[david867]

We purchased and rehabbed an invest property using HELOC funds for the down payment and repair costs. The HELOC is tied to our primary residence. We are now renting the property.  Are we able to include the HELOC interest as "Other Interest" on our Schedule E?

[PatriciaV]

If the HELOC is secured by your personal residence, you can only deduct the interest paid on Schedule A as an itemized deduction.

IRS Pub 530 explains mortgage interest in detail: Pub 530 Home Mortgage Interest