Just wondering if someone has a way around this for me - I don't think there is
I bought a condo in 2007. I paid mostly cash, but took a margin loan for a few
weeks while I got a home equity line of credit, which I paid off the margin loan
with. In 2009 I converted the condo to a rental. Over time I have paid down
the line of credit to about $18,000.
I would like to pay it down further but still be able to use it as a personal
piggy bank for liquidity reasons. However, I assume that if I do so, the
interest will no longer be deductible.
My annual expenses are about $3000 in condo fees, $1600 in property taxes, and
$1200 in management fees, which the manager takes off the top from the rent.
Is it true that if I pay down the loan in this scenario, basically the interest
would only be deductible on the lowest amount it reaches, but that if I borrowed
from the credit line to pay the condo fees, interest on that amount would be
- posted 8 years ago