Would You Consider HELOC Part Of Your Capital Gain?
I have a question on HELOCs. I have a HELOC on my investment home (A). I would like to buy another (B) and use the HELOC as part of my downpayment. My question is is that when I decide to buy another home (C) using Section 1031, what happens to the HELOC I used as a downpayment on home (B)? Does all of the money (including the HELOC downpayment) involved in the Section 1031 get transferred to the new investment (C) or does the HELOC downpayment come to me as cash and I do not get taxed on it since it is a cash downpayment. How does this work?
THanks,
Tom
The HELOC is a loan to buy the property. How can the loan count as capital gains since you will have to pay it back?
It like like any other loan you take out against the property