Can I deduct HELOC interest on second homes or income properties?
Possibly. You may deduct interest on HELOCs secured by your primary residence. You may also deduct interest on a second home HELOC provided that you do not rent the property out or that, if you do rent it out, you live in it for 14 days a year or 10% of the number of days you rent it out (whichever is greater). Here’s what the IRS says: Home mortgage interest is interest you pay on a loan secured by your main home or a second home. The loan may be a mortgage to buy your home, a second mortgage, a home equity loan, or a line of credit. Your main home is where you live most of the time. It can be a house, cooperative apartment, condominium, mobile home, house trailer, or houseboat that has sleeping, cooking and toilet facilities. A second home can include any other residence you own, and treat as a second home. You do not have to use the home during the year. However, if you rent it to others, you must also use it as a home during the year for more than the greater of 14 days or 10 perce
