Deductible Interest On Unsecured LOC???
We are going to settlement thursday on a new rental property, part is being funded from loan proceeds from another property we own, the balance is being funded from a $30k personal LOC. Will I be able to write off the interest paid on the LOC since it is being used to acquire this property, as long as I keep detailed records of the transfer of funds?
Tracy 
I did the same thing for my first property - - $30K unsecured, personal LOC for the down pmt. My accountant told me I could deduct the interest because it was used for "property improvement". Check with your accountant, but it seems you could claim the same.
Good Luck!
You say "we" are going to settlement. This implies to me that you have a partnership set up (or some other organizational form) rather than operating it as a sole proprietorship.
What I'm getting at is that the entity that you own the property in should be paying for this property. If the entity doesn't have the funding, then you need to get funds into that entity.
So, I would think that you'd have to either a) make a contribution of money to the entity (partnership?) or b) loan the money to the entity. I think the interest expense on that LoC could be deductible on your personal return as an "investment expense" but I'm not sure b/c I think it could depend on whether it's a loan or a contribution (i.e. investment in your partnership).
Then, if you loan the money to your partnership, you'll have an issue with "self charged interest". Do some searches on this topic and you'll find more info.
You should loan what you used from your personal funds to your LLC to make a purchase. You may have to pay income taxes on the interest but that is less costly than not deducting interest as a business expense.
You should certainly consult an accountant to help you structure this.
When I said "we", I was referring to my husband and myself, not a corporation or LLC.
If it's you and your husband then it may be the case that you're not considered a partnership (otherwise any two or more people that work together intending to make a profit is a partnership -and the worst kind of partnership could result (a general partnership) which doesn't provide any liability protection unless you have set up a partnership entity).
If you're owning the property in your own name then I think you will be fine to just keep accurate records and a paper trail as to the source and use of any funds.