All Forum Posts by: Eric Yu

@Eamonn McElroy. It make sense, but there is gap between fund and closing, HELOC interesting is prepare for closing. If this gap in same year, HELOC InterestIng will become my rental property costing, but bad luck, fund and closing doesn’t same year, obviously I can’t think interesting as costing at this year, so what can I do?

@Eamonn McElroy Thank you!

@Scott L. Yes, you think you are right.

@Ashish Acharya Thanks reply, actually I funded HELOC to my buy checking account, since mortgage bank need see downpay on my checking account, so HELOC generates interest now. As you said, it may put rentals property basis after I actually buy.

Hello BP community!

I recently used HELOC from my residence to purchase a rental house. Seller accept offer at 10/20, but it looks closing date will after 1/1/2019. Obviously, HELOC interest start from Nov., there are 2 month interest generated in 2018.

1. Can I use interest as a tax deduction on my personal tax return?

2. If not then how can I write off Heloc interesting from 2018 tax return?