If get home equity loan from rental property in 2018 to pay part of the primary residence mortgage acquired a year ago, is the interests deductible against rental income?

[ching19]

I have a rental property paid off but have a primary residence carrying mortgage, I would like to get a fixed rate mortgage loan (Not Home equity line of credit) from the rental property to pay part of current primary residence mortgage principles, is the home equity loan interest from the rental property tax deductible against the rental income? Thanks, 

[Opus 17]

Yes, but you have to be very diligent about being able to trace the money from the HELOC on your main home to the rental.  If you start using the HELOC for other things, it really muddies the waters and you endanger the entire deduction if you get audited.  The interest would be deductible on schedule E as a rental expense, not schedule A.

[ching19]

Not HELOC, instead it is fixed rate home equity loan like mortgage, will it be same?

[ching19]

it is home equity loan of a lump sum directly use to pay the primary residence current mortgage principles

[Opus 17]

Same principle.  You can deduct any interest (bank loan, credit card, etc) as a rental expense as loan as you can closely trace the borrowed money to the rental property.  

[ching19]

Thanks for your answer. Maybe I misunderstood you, but I am using a loan from the rental property to pay the primary residence mortgage, not a loan from primary residence to pay rental property, will this be the same?

[Opus 17]

Oh I’m sorry, I read it wrong.  The loan against the rental property will not be deductible in any way — not as a rental expense and not as a personal itemized deduction on schedule A.  

[ching19]

Thanks!