home: no mortgage, only heloc at what interest?
invest A: no mortgage
invest B: a mortgage at what interest?
1. Home mortgage deduction.
Heloc and other home mortgage are treated the same way. They are debt secured against your primary residence. Let's just call all of them home mortgage.
If home mortgage are used on the primary residence (or second home), the interest expernse is fully deductible.
If home mortgage is used for business, only $10,000 of the interest is deductible directly. The rest of the interest above $10,000 can be written off against your income from the business, such as invest B, but probably not from invest A.
http://www.bankrate.com/finance/taxes/when-a-heloc-is-used-for-a-business.aspx
2. My guess is that you probably already taken full advantage from home mortgage deduction. You only need to worry about which loan has higher rate, in order to repay them in advance to save interest cost.
invest A: no mortgage
invest B: a mortgage at what interest?
1. Home mortgage deduction.
Heloc and other home mortgage are treated the same way. They are debt secured against your primary residence. Let's just call all of them home mortgage.
If home mortgage are used on the primary residence (or second home), the interest expernse is fully deductible.
If home mortgage is used for business, only $10,000 of the interest is deductible directly. The rest of the interest above $10,000 can be written off against your income from the business, such as invest B, but probably not from invest A.
http://www.bankrate.com/finance/taxes/when-a-heloc-is-used-for-a-business.aspx
2. My guess is that you probably already taken full advantage from home mortgage deduction. You only need to worry about which loan has higher rate, in order to repay them in advance to save interest cost.
