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Home equity loan interest deductible on rental property schedule E Line 12 in 2019.

TP rented a property with first mortgage and home equity loan in 2019. The origination date for both  the first mortgage and home equity loan was January 2019.

Is home equity loan interest deductible on rental property schedule E Line 12 in 2019? Thanks for your time and comment.

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rbynaker
Level 11

Throw out all of the bank terminology.  What matters for Sch E is that you're able to trace loan proceeds from the bank directly (or indirectly via the tracing rules in the regs) to an expenditure to buy, build or improve the rental property.

Rick

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rbynaker
Level 11

Throw out all of the bank terminology.  What matters for Sch E is that you're able to trace loan proceeds from the bank directly (or indirectly via the tracing rules in the regs) to an expenditure to buy, build or improve the rental property.

Rick

View solution in original post

TaxGuyBill
Level 14

@rbynaker wrote:

 to an expenditure to buy, build or improve the rental property.

 


I think it can be ANYTHING traced for the rental property, including repairs, maintenance and taxes.  Right?