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Reportable transfers between accounts?

[I thought I posted this some time back, but haven't seen it appear -- moderator no like?]

Every so often I transfer substantial chunks of money between HELOCs in two different states -- take out an additional draw from one, pay down another by an equal amount -- as interest rates change.

(Different HELOCs set their rates by different formulas, on different dates, for different periods; interest rate differences can be substantial; making online transfers appears to be fast and free.).

Any circumstances in which these transfers could become "reportable transactions" for Fed or state tax returns?

========================================= MODERATOR'S COMMENT: Moderator like just fine

Reply to
AES
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If my understanding is correct, you have two lines of credit with varying interest rates. Every once in awhile you borrow funds from the loan at the lower interest rate to pay down the loan with the higher rate. I see nothing that is reportable as a tax event.

The only conceivable issue is if at some point, your outstanding HELOC indebtedness is bumping up against the $100,000 limitation for deducting qualified mortgage interest and you borrow from one account, pushing you over the limit, and don't transfer those funds immediately to the other account. You would have to perform some calculations in order to determine the allowable interest to deduct as mortgage interest.

Reply to
Alan

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