All Forum Posts by: Amol K.

@Anthony Wick, yes. In my case, the HELOC interest is lower than the interest on the rental property mortgage interest. But if rental interest is tax deductible and HELOC isn't, then mortgage wins.

So basically uncle Sam is preventing me from doing what's best for me economically. He's forcing me to borrow from a higher cost vendor by penalizing me for borrowing from the lower cost HELOC

@David M., so to confirm, I could borrow from bank (business loan) or an individual (personal loan) and get to deduct the interest if the funds are used for a business relevant purpose....... But if I borrow from a specific source, my HELOC, only then I cannot deduct the interest?

If someone draws funds from the HELOC on their primary residence, and uses them to pay down the principal on their rental property, is the interest paid on the drawn amount tax deductible under the rental property?