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Updated almost 5 years ago,

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3
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L Bauer
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3
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Using multiple LOCs for investment properties

L Bauer
Posted

I have a LOC secured by my house (primary residence) and another LOC with a slightly higher interest rate secured by a rental property. Both LOCs were established before Dec 2017. Keeping the new mortgage interest write-off tax changes in mind, if I want to buy another investment property, which LOC should I use? Can the mortgage interest on either one be included as rent expense when I file taxes? As a side note, if I run up the full balance on my house LOC, I will be under the 1M limit, but I will not be using the money to improve the property that secures the mortgage. Any advice is appreciated!