Answered: Re: Home equity loan interest deductible on rental property schedule E Line 12 in 2019.

The Real Halloween · ‎07-06-2020

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.

rbynaker · ‎07-07-2020

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

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rbynaker · ‎07-07-2020

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 · ‎07-07-2020

@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?

Home equity loan interest deductible on rental property schedule E Line 12 in 2019.

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