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Started By
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re: Deducting Mortgage Interest on Two Houses in Same Year?
Posted on 3/24/15 at 4:32 pm to lsu480
Posted on 3/24/15 at 4:32 pm to lsu480
quote:
otherwise it is a rental property and doesn't qualify
mortgage interest and property taxes on rental property is deductible, many other things are depending on circumstances, for example, my wife is a licensed realtor in FL, where we have rental property, as a result, if we even think about the property almost everything is deductible, improvements. maintenance, trips to go "check" on property, new appliances, about the only thing I can think of that isn't deductible is HOA dues and I'd have to double check that, but I've been doing this type of shite now for over thirty years and although I don't do my own taxes I'm fairly familiar
This post was edited on 3/24/15 at 4:35 pm
1
Posted on 3/24/15 at 6:08 pm to 777Tiger
On the rental property, the interest is an expense. On primary residence or second home, the interest is considered a deduction.
Posted on 3/24/15 at 6:10 pm to BeerMoney
Short answer: Yes.
Long answer: you can deduct as an itemized mortgage interest deduction on all mortgage debt up to 1 million dollars, plus an additional home equity line debt of 100,000. However, you can only use this on two properties at one time. So if you had Home A and Weekend Home B, and sold Home A and bought Home C, you could deduct the mortgage interest paid to all three houses, provided you did not count more than two at the same time.
Rental properties you own, that have mortgages, the interest is deducted on Sch E as a rental expense
If you have more than two properties that are not rentals, and you consider the additional properties as investment properties (for example, a land loan), you can try to deduct the additional interest as investment interest expense.
Long answer: you can deduct as an itemized mortgage interest deduction on all mortgage debt up to 1 million dollars, plus an additional home equity line debt of 100,000. However, you can only use this on two properties at one time. So if you had Home A and Weekend Home B, and sold Home A and bought Home C, you could deduct the mortgage interest paid to all three houses, provided you did not count more than two at the same time.
Rental properties you own, that have mortgages, the interest is deducted on Sch E as a rental expense
If you have more than two properties that are not rentals, and you consider the additional properties as investment properties (for example, a land loan), you can try to deduct the additional interest as investment interest expense.
Posted on 3/24/15 at 6:13 pm to tigerrocket
quote:
deduction.
however categorized, that's what it is
Posted on 3/24/15 at 6:24 pm to 777Tiger
an expense is not a deduction, but that is why you hired a cpa.
Posted on 3/24/15 at 6:35 pm to tigerrocket
quote:
an expense is not a deduction, but that is why you hired a cpa.
if it lowers your tax basis then yes it is, maybe that's why I can afford to hire CPAs, don't get caught up in the minutiae but I know how it works
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