I have been able to obtain a HELOC with Sandy Spring bank, but then learned that I can't use it like a checking accounts.

The difference less closing costs is deposited tax free into your checking account.

Hey everyone,  I was wondering if anyone had a recommendation for a good tax accountant in the central NJ area that specializes in real estate?  

You need to take into account your long term goals, your short term goals, your resources especially finances, and your risk tolerance. 

It wasn't a situation where we could just drop rents incrementally, but rather that there wasn't any money in their accounts. 

I suppose you have been reporting the rental income and expenses(including depreciation) on your tax return.If you get paid in Italian currency - it is your job to convert the amounts in USD when reporting it on your return.If you hold the property in an entity(partnership or corporation) you may have additional informational forms to file with the IRS.If you have a bank account in Italy with a value over $10,000 - you also have an additional informational forms to file with the IRS.You should have been entitled to a step-up in basis upon inheritance.

@Carrie Hallensleben Sometimes to get around what the lender was saying, you could try accessing the line and keep it in a bank account for a few months before trying to obtain your next property.

Hey @Steve Watson - Without getting into a long winded explanation which should really come from an accountant, I can tell you that if you use a cash basis for your accounting (rather than accrual) you recognize the income when it is received rather than when the sale is made. 

Do you loan out of your retirement account?  

I am not an accountant or attorney, but to be able to deduct on your taxes you need to follow that rule.