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Updated over 3 years ago,

Rumen Mladenov's profile image
Rumen Mladenov's profile image
Rumen Mladenov
  • Investor
  • from Newark, Delaware
  • Member since Aug 29, 2014
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245
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198
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Rumen Mladenov's profile image
Rumen Mladenov's profile image
Rumen Mladenov
  • Investor
  • from Newark, Delaware
  • Member since Aug 29, 2014
Connect
Rumen Mladenov
  • Investor
  • Newark, DE
198
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245
Posts
Tax, SDIRAs & Cost Segregation

Using HELOC for a hard money loan - tax implications?

Rumen Mladenov
  • Investor
  • Newark, DE
Posted

Let's say someone takes money out of a HELOC at 8% and lends it out as a hard money loan at 12%. After the loan is paid off, a 1099 is sent to the hard money borrower and the IRS showing the interest received. How can this be addressed at tax time so that only the actual income is taxed (12%-8%), not the whole 12%?

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