Hi All,
I have two houses (house A & B) and a unit apartment.
I'm currently residing in the Unit.
House B is an investment property on 100% loan. 80% new loan and 20% equity loan taken from my residential Unit.
House A is nearing its end of construction and my plan is to sell my residential unit and make house A my residential property.
However, I would like House B to remain at 100% loan for full investment tax deductibility.
If I were to sell my Unit, i would have to pay back the equity loan on it in cash and that would reduce total investment loan on my House B to 80%. I don't want that to happen.
So, here's my question. If I take out an equity loan from House A equal to the equity loan on my Unit
and pay back the equity loan on my Unit with the House A equity loan, would the House A equity loan be tax deductible as it would replace the 20% loan on the investment property House B?
Thank you for your guidance in advance ☺️
2,135 views
3 replies