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Updated over 7 years ago,
HELOC on primary to fund down payment for property in LLC
I've heard many people talk about using a HELOC to help fund properties. Although this sounds great, I'm wondering about how to use a HELOC (on a primary residence) to fund the down payment for a property held by my LLC. It seems that the repayment of the HELOC mixes things quite a bit. I would be using funds coming in to the business LLC to pay down the HELOC which is a "personal banking" thing. Every time I use those funds, wouldn't I be taxed as in taking an owner draw since I'm using business money to pay for a personal item? How does this work, or rather, how do you structure this correctly?