Sharing a LOC between properties.

[Pablo]

So far I have planned to set up a LOC for each IP which is to be used to cover any expenses, but I can see that a fair bit of equity will be tied up in LOC's due to buffers in each one once you start getting a few IP's so I am now considering having one LOC set up that will fund expenses on all IP's and also make things more simpler.

My concern is what happens if I sell an IP. Is all the interest paid on the LOC still deductable as it was originally for investing, or do I have to work how much of the LOC is allocated to the sold IP and pay it off, or is the part of the interest paid on the LOC allocated to the IP just simply not deductible anymore?

Hope this isn't to confusing

Thanks
Pablo.

 

[The Fence]

Interest on a sold property is non deductable.....either pay it off or don't deduct....

 

[tobe]

or dont sell!

 

[Pablo]

Looks like I'll stick with my original plan of keeping them seperate.