I thought the first $100K is deductible, but any amount over that is not unless you use it for improvements on that property. Does this only apply to owner-occupied cash-outs/HELOCs, or might it also apply to rentals?
From what I understand, it is the first $100K that is pulled out via cash-out refi or HELOC on ALL owned properties that can be deducted, so if flu were to cash out $80K on his primary, he could only deduct the interest on ~$20K of the cash-out on another property.
Am I totally off on this?[/quote]
Correct on the $100K on primary residence is deductible, but it’s not considered purchase money debt. Does not apply for rentals.
