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Updated about 2 years ago on . Most recent reply
Deduct interest from investment for residence deduction
Hi, all. If I get a HEL on an investment property to build a primary residence, is the interest on that loan considered interest on a residence that can be deducted with itemization? Thanks
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Michael Plaks
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
If I understand your question, you want to take a LOC against a free and clear rental property and use the proceeds to build your personal residence.
Interest is nNot deductible in this case, sorry. Not deductible against the rental because it's not used for this rental property. Not deductible as personal itemized deductions, either, because it has to be secured by the property you're building.