The Real Halloween
Level 7
07-06-2020
10:34 PM
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TP rented a property with first mortgage and home equity loan in 2019. The origination date for both the first mortgage and home equity loan was January 2019.
Is home equity loan interest deductible on rental property schedule E Line 12 in 2019? Thanks for your time and comment.
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rbynaker
Level 14
07-07-2020
08:20 AM
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Throw out all of the bank terminology. What matters for Sch E is that you're able to trace loan proceeds from the bank directly (or indirectly via the tracing rules in the regs) to an expenditure to buy, build or improve the rental property.
Rick
TaxGuyBill
Level 15
07-07-2020
11:51 AM
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@rbynaker wrote:to an expenditure to buy, build or improve the rental property.
I think it can be ANYTHING traced for the rental property, including repairs, maintenance and taxes. Right?
