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senoraschultz
June 5, 2019
Question

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?

  • June 5, 2019
  • 2 replies
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2 replies

Carl11_2
Carl11_2
Employee
June 5, 2019
Use of secured funds to purchase rental property is not affected by the new tax law. So yes. You could have a secured loan for a trillion dollars to purchase business property (which is what rental property is) and 100% of the interest is deductible as a business expenses.
    T
    TaxGuyBill
    Employee
    June 5, 2019

    Yes, the interest from any loan used to purchase rental property will be deductible as a rental expense.

    S
    senoraschultzAuthor
    June 5, 2019
    Great, thank you! My concern was because the new tax plan makes HELOC interest not deductible “unless they are used to buy, build or substantially improve the taxpayer’s home THAT SECURES THE LOAN.” (Emphasis mine) <a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law">https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law</a>
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