Retired fixed income investor heloc

[Jeremy England]

What are the tax implications of a retired senior living on ss, but owns their home outright and wants to get a heloc to invest in real estate?

For instance.  Get the heloc, , fund a deal as a private lender, upon disposition gets a return on that money. Lets say 5-10000 every 6 months, on top of the heloc cost.  

Id that short term capital gains taxed at 20pct?  

[Chris Seveney]

Quote from @Jeremy England:

What are the tax implications of a retired senior living on ss, but owns their home outright and wants to get a heloc to invest in real estate?

For instance.  Get the heloc, , fund a deal as a private lender, upon disposition gets a return on that money. Lets say 5-10000 every 6 months, on top of the heloc cost.  

Id that short term capital gains taxed at 20pct?  

Most likely you will not get a HELOC if you do not have substantial income, just because you own the home the banks need ability to repay. May want to consider a reverse mortgage in that situation.

To answer your question, not a CPA but typically funding as a private lender is taxed at ordinary income rates.