HELOC deduction for rental property

Apr 11, 2008 2 Replies
W

In 2007, I used money from my HELOC to buy an investment property. The amount put the balance of the HELOC over $100,000.



I know that I have to allocate the interest from the HELOC attributable to buying the rental on schedule E.



I use a tax program (TaxAct) and file online.



How to I indicate that some of the interest on the 1098 for the HELOC is in schedule E and some is on schedule A? If I was filing paper I could attach an explanation.


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R

Did you use all of the HELOC loan to buy the rental? Did you use any of the HELOC for improvements to your home, buy a car, take a vacation, or buy tax free bonds?

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W

Current balance is about $130K. About $40K was used for the rental, and the rest is mainly improvements to my home.

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