Reporting HELOC interest on Tax Return

[Joseph Cavicchi]

Hello, I'm relatively new to real estate investing and this will be the first year I file taxes after opening a HELOC last year. I used the HELOC for a down-payment on a new house. I now rent out the old house (with the HELOC) and the rent comfortably covers the HELOC/mortgage payments with money to spare.

My question is whether I am allowed to deduct the HELOC interest alongside my new mortgage interest on the new house. I have read tidbits online that suggest that in Tennessee I am allowed to as long as I own no more than one investment property in addition to my primary home and the mortgage basis is no greater than 750k (married, filing jointly). Any advice is appreciated - my goal here is to figure this out without hiring a CPA. Thanks