Quote:
Originally Posted by V
Is this correct? I've heard that if you use a HELOC to put a downpayment on a house the interest on the mortgage of the house is tax deductible, but the interest on the HELOC is not. I really gotta get a hold of an accountant.
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If you invest in something you can claim any cost associated with the investment against any earning.
IE if you borrow money ( can use your house to back the loan ) all borrowing costs can be written off. That way if you have a 5% loan (or say a second mortgage) and your marginal rate is say 30%, all you need is a 3% return to break even.
It is rediculous to say most people don't have the stones to invest available capital collecting dust in a home. I don't have the stones not to.