Commercial Line of Credit & interest - CPA question

[Michael King]

Hello BP, I have this question.

I'm looking to potentially obtain a commercial line of credit with an interest rate of 5%, per the bank. I would be getting it against one of my rentals which is owned outright. This is as an alternative to refinancing it with cash out, at similar (maybe 4.5%) rate. So the commercial line of credit has so far 2 things going for it - an alternative to refinance and therefore closing costs, and competitive interest rate. 

Now supposing I got the line of credit for say $100K and over the course of a year paid $5000 in interest, is that interest treated the same way as mortgage interest?

I did search the forums a little, but went down too many squirrel holes before I gave up. I appreciate anyone's answer.

[Tim Delaney]

Are you asking if that interest payment is tax deductible? I would think that if you set up your ownership of the house as a business entity and are taking a commercial line of credit then yes, it would be deductible as a business expense. From my understanding the interest on a HELOC's on your primary residence is not tax deductible, but since this other home is an investment it should be. I am NOT a CPA though, so obviously cross-check my info.