Scenario: 100k LOC, used to buy 2 separate income-producing managed funds at 50k each. 100% of the interest is tax deductible. 1) When one of the managed funds is sold, am I correct in assuming that the original 50k borrowing for the sold fund must be repaid, since that 50k borrowing is no longer for an income-producing purpose? 2) If so, since this 50k repayment is associated with the sale of an asset, does it cleanly restore the LOC back down to 50k of fully deductible debt? Rather than 25k coming off each part, resulting in only 25k of deductible debt associated with the unsold fund? 3) Will the repayment always equal the original borrowing for that fund (50k) regardless of whether that investment increased or decreased in value?