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Updated almost 3 years ago,
Home Equity Loan on primary residence for rentals, Schedule E?
I am considering taking a 5 year $100,000 Home Equity loan on my primary
residence to use solely on improvements in my 3 rentals. I have asked my
accountant and others online and some say I CAN deduct the interest on
Schedule E by "electing" to 'trace' the amount to it’s actual use.
Others cite publication 936 and say unless the secured debt is used to
improve THAT property (my home), it's NOT deductible. Does anyone know
which is correct?