Home Equity Line of Credit for Business Use

Layer-visible-off
0
Unfavorites
0

Is it possible to use a home equity line of credit for business purpose?


0
correct_answer

Absolutely. There are some benefits to this and also some negative aspects to using a home equity line of credit for business purposes.

One negative is that if your business fails and you intended on using the business to pay back the loan you may not be able to pay it back and end up with your home at risk.

Some of the positives are two forms of tax deductibility. One would be the mortgage interest with is a tax deductible item. Also you will be able to itemize the draws from your equity line as expenses for the business. This may be an excellent record keeping instrument as most equity line providers have online statements that itemize draws or show cancelled checks.

Answered almost 6 years ago
Anonymous

You Must Be Logged In To Answer