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Updated about 2 years ago on . Most recent reply
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Heloc at $0 balance and 1031
Hi all - 3 years ago we 1031'd an investment property into 3 DST properties. At the time we had a $0 balance HELOC on the property we sold. I just realized the bank still has the $0 balance HELOC open and available for use. Did this HELOC transfer to the new properties or was something overlooked during the sale 3 years ago? Just wondering if I still had access to it, the bank said it's ready to go but I do not want to do anything wrong by the IRS!
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Thank you everyone for responding!! @Jon Taylor, the collaterol for the HELOC was the investment property sold 3 years ago (and 1031'd into 3 DSTs)...that's why I'm concerned it's probably not still available even though the bank is saying it is...I see @Dave Foster 's comment that the bank may not extend once they figure out it's an interest in an entity structure presently...so I am guessing I need to explain to the bank what happened and see what they say...