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Old 01-12-2018, 08:39 AM   #41
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The only exception might be if the money was borrowed for business purposes, as mine was. I used it to do improvements on a rental. I'm still waiting for a final answer from the CPA.
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HELOC deductibility depends on whether it was “home equity indebtedness” or “acquisition indebtedness.” Acquisition indebtedness — mortgage debt used to acquire, build or substantially improve the residence — will be deductible, according to Michael Kitces, partner and director of Wealth Management at Pinnacle Advisory Group.
Any HELOC interest for money used to acquire a rental property or used for a business purpose is also deductible through the business.

It may not be a personal deduction, but the business/rental can pay the interest and deduct it from their revenues, or suffer a loss and the individual can deduct the business loss on a pass-through entity.
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Old 01-16-2018, 01:29 AM   #42
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That's not correct. HELOCs were simply eliminated from the tax code and are therefore not tax deductible. The only exception might be if the money was borrowed for business purposes, as mine was. I used it to do improvements on a rental. I'm still waiting for a final answer from the CPA.


I thought that too at first but upon further reading, it appeared that HELOC interest may still be deductible if used for home improvement purposes. I’m also waiting for final answer from CPA, as I haven’t and don’t plan to read the actual law.
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Old 01-16-2018, 06:30 AM   #43
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I'm waiting for the IRS to clarify. After all, they make the real "law."
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