This article,The Allowance for Loan and Lease Loss Becomes a Heavier Burden for Credit Unions, includes my thoughts on one of the up-and-coming challenges for credit unions and banks in keeping up with the time necessary to review loans for impairment to calculate ALLL accurately at the same
time that loan volume is (finally) ticking up.
Monthly Archives: June 2011
How does loan source impact where/how interest is deducted?
Your question:
I have a borrower who has a HELOC on their primary residence that they used to pay off their mortgage on their rental. On their schedule E, they have written off the interest on the rental (even though the subject property on the loan is their primary residence). Is this allowed? On line 40 of their 1040, they took the standard deduction of $11,400.
Linda says:
You have stumbled on an area where there are different points of view. On the one hand, IRS Publication 535 on Business Expenses says…
