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.
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?
Current balance is about $130K. About $40K was used for the rental, and the rest is mainly improvements to my home.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.