Re: Mortgage Interest

We recently took out a mortgage on our primary home and used the funds to pay off the mortgage on our rental property. Can I claim the 1098 mortgage (that is now on the loan on our primary home) on our rental property that we used the funds to pay off ?

posted

No, because in order to be deductible as a rental expense, the mortgage would have to be secured by the rental property, not by your personal residence. Under the new tax law, the mortgage on your personal residence would not qualify as home acquisition debt, so it wouldn't be deductible as home mortgage interest.

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