Allocation of loan proceeds

Jun 22, 2012 1 Replies

Assume I take a home equity loan and then turn around and use the full amount as a down payment on a rental property. Can I treat the loan and the interest as fully associated with the rental property rather than as home mortgage interest?


Assume I take a home equity loan and then turn around and use the full amount as a down payment on a rental property. Can I treat the loan and the interest as fully associated with the rental property rather than as home mortgage interest? Yes.

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