Taking out HELOC on Prim. Residence to buy Inv. Property

[Marcel Lorincz]

Hello,

I know there were similar questions already asked, but I would like to ask this specifically:

1/ Can use HELOC from my primary residence to buy an investment property and be able to deduct HELOC interest as business expenses?

2/ Will I need to follow any special guidelines to be able to show the IRS that the money that I used for the investment property purchase really is the money from HELOC? (for example, not to commingle or the way it travels or the timing of the transactions,...)

Thanks,

Marcel

[Lance Lvovsky]

@Marcel Lorincz

Yes.

Under interest tracing rules, the interest traced to an investment property is deductible. Consult with your cpa.