Under the new tax plan, can I still deduct HELOC interest if I take out a HELOC on my primary home to help purchase a rental property?

[TaxGuyBill]

It can only be entered as a rental expense.

If the rental expenses exceed rental income, your rental has a loss.  In SOME cases that loss can offset your income from your job, but in other cases that loss is suspended until either (a) you have rental profit (or other passive income) or (b) you sell the property.

In other words, that rental interest expense will eventually be able to used (even offsetting your job income).

[jackharrisnc]

Hi.  I saw the following information on "On Demand Tax Guidance (Turbo Tax premier, 2017)" in the Rental Expense section (Schedule E).  Based on the wording below, it looks like the HELOC has to be secured against the equity in the rental property.  I want to have a HELOC secured against my primary property and use to purchase and maintain a rental property.  Can I still do that?  

---Wording--
Report Mortgage Interest

Enter the mortgage interest shown on Form(s) 1098 issued with your name and your Social Security number.

You may have more than one Form 1098, from different lenders, if you refinanced your first mortgage, or your mortgage was sold.

Include any interest from an equity loan or home equity line of credit (HELOC) secured on this property.   

What is a home equity line of credit (HELOC)?

A home equity line of credit is a type of second mortgage that allows you to borrow against the equity in your rental property. You use the credit card or checkbook provided with the line of credit to purchase items as needed for your rental.

[TaxGuyBill]

It does NOT need to be secured against that rental property.  I pointed out the legal things in my previous comment.

There are countless omissions, errors, and improper wording in the "On Demand Tax Guidance" things in TurboTax.

[Countingcat]

I am in this same situation but with an added twist.  The rental property was purchased in 2022 with HELOC on my primary residence.  The property is not available for rent until 2023.  Since I cannot file Schedule E until 2023 can I deduct the interest from 2022 on Schedule E in 2023 taxes, do I lose it or is there some way to deduct on 2022 taxes?