Line of credit Interest payment question

[John Edwards]

My inclination would be to separate the HELOC interest from your mortgage
interest, since they are different loans. If you set the interest up as a
different account, that will allow to determine the cost of borrowing for
each of your loans/mortgages/lines of credit separately.

There may be tax reasons to do so as well, if the tax treatment of mortgage
interest is different than that of a home equity line of credit.

John Edwards

On Mon, Feb 8, 2010 at 7:03 PM, Graham Lane <grahamlane at gmail.com> wrote:

> YEP!
> That's the deal. So would it make sense to classify the interest payment to
> a particular bank under an expense, or just leave it as a mortgage expense?
> Whats gonna be useful tax wise, research wise later tat I am not thinking
> of?
> Thanks
>
> On Mon, Feb 8, 2010 at 5:33 PM, David T. <sunfish62 at yahoo.com> wrote:
>
> > If I understand you correctly, you are making an interest-only payment to
> > your bank for your HELOC. If I am correct, then you shouldn't see
> anything
> > in the Liability account, since you didn't change the value of that
> account.
> > You didn't pay anything into the loan--that's why the bank didn't change
> the
> > balance of your account with them. All you are doing is paying them.
>