topic Taken 75k HELOC to buy rental property of 100k. HELOC Annual interest is 3k. I am a salaried employee in the 20% bracket. Can I claim interest deduction of the entire 3k? in Investors & landlords https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/taken-75k-heloc-to-buy-rental-property-of-100k-heloc-annual-interest-is-3k-i-am-a-salaried-employee/01/701061#M31070 If I buy 3 other rental properties with HELOC on similar lines, is the entire interest deductible from my income ? Thu, 06 Jun 2019 13:20:39 GMT pa_chaits 2019-06-06T13:20:39Z Taken 75k HELOC to buy rental property of 100k. HELOC Annual interest is 3k. I am a salaried employee in the 20% bracket. Can I claim interest deduction of the entire 3k? https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/taken-75k-heloc-to-buy-rental-property-of-100k-heloc-annual-interest-is-3k-i-am-a-salaried-employee/01/701061#M31070 If I buy 3 other rental properties with HELOC on similar lines, is the entire interest deductible from my income ? Thu, 06 Jun 2019 13:20:39 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/taken-75k-heloc-to-buy-rental-property-of-100k-heloc-annual-interest-is-3k-i-am-a-salaried-employee/01/701061#M31070 pa_chaits 2019-06-06T13:20:39Z You are taking an equity loan from your main home to buy... https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/you-are-taking-an-equity-loan-from-your-main-home-to-buy/01/701073#M31075 <P>You are taking an equity loan from your main home to buy rental properties.</P><P>In that case, you can deduct the loan interest as a rental expense on schedule E, or as personal mortgage interest on schedule A (but not both).</P><P>If you deduct the interest as personal mortgage interest on schedule A, your deductible mortgage amount is equal to the acquisition cost of your home plus $100,000. &nbsp;The acquisition cost is what you paid, plus the cost of any permanent improvements.</P><UL> <LI>Let's say you bought your home for $100,000 and it is now worth $500,000 and you made $50,000 of improvements. The most mortgage interest you can deduct is on a loan balance of $250,000; which could include any combination of your primary mortgage and one or more HELOCs. &nbsp;(For example, if the main mortgage is paid off you could have up to $250,000 of HELOC. If the main mortgage balance is $40,000, you could deduct interest on up to $210,000 of HELOC.)</LI> </UL><P>I'm not aware of any limits on deducting the interest as a rental expense, so that is probably the better way to go.</P> Thu, 06 Jun 2019 13:20:40 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/you-are-taking-an-equity-loan-from-your-main-home-to-buy/01/701073#M31075 Opus 17 2019-06-06T13:20:40Z
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topic Taken 75k HELOC to buy rental property of 100k. HELOC Annual interest is 3k. I am a salaried employee in the 20% bracket. Can I claim interest deduction of the entire 3k? in Investors & landlords
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https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/taken-75k-heloc-to-buy-rental-property-of-100k-heloc-annual-interest-is-3k-i-am-a-salaried-employee/01/701061#M31070
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If I buy 3 other rental properties with HELOC on similar lines, is the entire interest deductible from my income ?
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Taken 75k HELOC to buy rental property of 100k. HELOC Annual interest is 3k. I am a salaried employee in the 20% bracket. Can I claim interest deduction of the entire 3k?
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https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/taken-75k-heloc-to-buy-rental-property-of-100k-heloc-annual-interest-is-3k-i-am-a-salaried-employee/01/701061#M31070
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If I buy 3 other rental properties with HELOC on similar lines, is the entire interest deductible from my income ?
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You are taking an equity loan from your main home to buy...
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https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/you-are-taking-an-equity-loan-from-your-main-home-to-buy/01/701073#M31075
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<P>You are taking an equity loan from your main home to buy rental properties.</P><P>In that case, you can deduct the loan interest as a rental expense on schedule E, or as personal mortgage interest on schedule A (but not both).</P><P>If you deduct the interest as personal mortgage interest on schedule A, your deductible mortgage amount is equal to the acquisition cost of your home plus $100,000. &nbsp;The acquisition cost is what you paid, plus the cost of any permanent improvements.</P><UL> <LI>Let's say you bought your home for $100,000 and it is now worth $500,000 and you made $50,000 of improvements. The most mortgage interest you can deduct is on a loan balance of $250,000; which could include any combination of your primary mortgage and one or more HELOCs. &nbsp;(For example, if the main mortgage is paid off you could have up to $250,000 of HELOC. If the main mortgage balance is $40,000, you could deduct interest on up to $210,000 of HELOC.)</LI> </UL><P>I'm not aware of any limits on deducting the interest as a rental expense, so that is probably the better way to go.</P>
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<pubDate>Thu, 06 Jun 2019 13:20:40 GMT</pubDate>
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