AES wrote:
- quote -

varying interest rates. Every once in awhile you borrow funds
from the loan at the lower interest rate to pay down the loan
with the higher rate. I see nothing that is reportable as a tax
event.

The only conceivable issue is if at some point, your outstanding
HELOC indebtedness is bumping up against the $100,000 limitation
for deducting qualified mortgage interest and you borrow from one
account, pushing you over the limit, and don't transfer those
funds immediately to the other account. You would have to perform
some calculations in order to determine the allowable interest to
deduct as mortgage interest.

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[I thought I posted this some time back, but haven't seen it appear --
moderator no like?]

Every so often I transfer substantial chunks of money between HELOCs in
two different states -- take out an additional draw from one, pay down
another by an equal amount -- as interest rates change.

(Different HELOCs set their rates by different formulas, on different
dates, for different periods; interest rate differences can be
substantial; making online transfers appears to be fast and free.).

Any circumstances in which these transfers could become "reportable
transactions" for Fed or state tax returns?

========================================= MODERATOR'S COMMENT:
Moderator like just fine

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >