Quickest and Easiest Way to Understand Interest Deductibility 

I recently had a consultation with a prospective client. She asked me the following question,
“I’m considering turning my current primary residence as a rental. I’ll use the HELOC that’s already setup on this property and use the funds to purchase my next primary residence. What is the tax implication?”
I shared my advice with her that if she uses the HELOC as the downpayment of her primary residence, interest would not be deductible.
Her mortgage broker did not agree with me. He even called up his accountant to confirm his understanding. 🤔🤨
I hate it when we’re playing broken telephone.
Thought I would share with you how to determine interest deductibility once and for all.
Continued reading here:
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