Can I Deduct the Interest of My Home Equity Line As My Rental Property Expenses?

I live in CA. I bought a rental property using my residential equity line of credit. Can I deduct the interest of this equity line of credit as my rental business expense or can I count the interest as the mortgage payment?

Thank you.

Suggestion:

I would deduct it from the place that does you the most good. It can be deducted as a business expense or it can be deducted as a personal expense. Interest and fees on a home equity line of credit is a legitimate deduction.

Have your tax preparer do it both ways to see which way is the most advantageous for you. That's what good tax people do. By running it through your business you should also be able to save money on your social security taxes because it lowers your earned income. If you don't need the deduction for your business then deduct it from your personal income lowering your unearned income amount.

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