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Home Equity Line of Credit

What is the best way to reflect a home equity line of credit with a balance under $100,000 so that Esplanner can factor in the interest deductions allowed for the line of credit when determining the annual tax liability? Also, what is the best way to reflect paying off of the line over time? Would you use the special expenditure folders (repayment of loans), or just pay the amounts out of consumption? Would you need to apply the interest rate somewhere so that Esplanner properly calculates the taxes?

Kelvin

1

Special Expenditures/receipts is the way to go. When you draw on the line of credit enter a non-taxable receipt. When you make a payment, enter two expenditures, one deductible (interest) and one not (principal).

Best,

Dick Munroe