tax deductions

[asifghayoor]

I took out $40000 from my HELOC and deposited it in my corporations bank account, the corporation then bought our first property with it, can I write off the intrest in my HELOC against my personal income?

Thanks

Asif Ghayoor

 

[Thomas Beyer]

QUOTE (asifghayoor @ Apr 20 2009, 03:25 PM)
I took out $40000 from my HELOC and deposited it in my corporations bank account, the corporation then bought our first property with it, can I write off the intrest in my HELOC against my personal income?


yes .. but you need a loan agreement between corporation and yourself to create an arms-length arrangement .. and the interest rate has to be "reasonable" between yourself and corporation ! Thus, you receive income from corporation and pay HELOC resulting in a small gain or loss or 0 ..



Why would a corporation buy property and not you anyway ?



Have a look at this posts here too:



Pro`s and Con`s of creating a company for real estate holding:

http://myreinspace.com/public_forums/Real_Estate_Discussion/62-10292-54272-To_create_a_company_or_not.html#54272