s About Taxes)/Line of Credit on Rental Property Advertisement Expert: John Stancil, CPA - 5/2/2012 We live in Florida but own a house in Maryland which has been rented for the last 2 1/2 years. The house was not rented until we had been gone from it for almost a year. 2011 was the first year that we had not lived in the house 2 out of the last 5 years, so it became a "business" rental property. I have a line of credit on the house taken out in 2005 when the house was our primary residence. I do know that the interest on the first $100,000 of the line of credit is tax deductible when living in the house, but we have now established residency in Florida.
My question is now that the house has become a business rental, is any of the interest on the line of credit tax deductible. It is definitely a "line of credit" and not a mortgage.