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Home › Forums › Closed Forums › Buying and Selling RE › Cash out refinance investment property
Just as an FYI HELOCs interest charges are no longer tax deductible under the new tax laws for most uses of a HELOC. Apparently you can still deduct interest for improvements to the home or condo the HELOC is attached to. You’d probably need a tax lawyer and/or accountant to see if there’s a loophole for deducting it as a business expense for a rental.
Yep, it would be a business expense IF you use the proceeds to further your rental-property business.
So am I understanding correctly that if I used a HELOC from the existing rental property, as down payment to buy another rental property, that I can deduct the interest as it’s a business expense?
So which banks out there are offering HELOCs on rentals?
I’m getting a new Heloc on an investment property from BoA.
No specific plan for use, more to have in case of an opportunity.
-30 yr fully amortizing payment calculated monthly
-initial rate 3.24% 12 months, then 4.24% variable
-no fees
Notable that the bank won’t use the income from the property in question to determine income, but fortunately I don’t need that income to qualify.
Mostly to use as backup if I need cash for next 10 years before I can tap IRAs without penalty.