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March 19, 2024
Question

Deducting HELOC Interest for Rental Property

  • March 19, 2024
  • 1 reply
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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?

1 reply

PatriciaV
Employee
March 19, 2024

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

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