All Forum Posts by: David Williams

Since the HELOC was not used on improving the home you cannot deduct the interest, nor use that to offset your capital gain.

Did you read lone #1 of my reply?

What you owe doesn’t affect how much tax you owe. 

If you pay off a property or owe more than it’s worth, you can still owe or not owe capital gains tax. The tax is based on selling price minus purchased price. What you owe doesn’t matter at all. 

You will owe exactly the same amount of taxes if you get a heloc or not. 

Your question was answered but I am curious - Why would you take out a HELOC for a six month cd?

If you owe nothing or if you owe $1million it doesn’t affect the capital gain or the taxes due.  Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain. (Unless it was a rental, then you have to pay depreciation recapture as well, usually at 25%.)