When I am deducting investment interest on the underlying mortgage via Schedule A, what items are allowed:
- Mortgage interest
- late charge and fees incurred
- Can I deduct principle paydown payment? I am not sure that.
- Escrow account is with Underlying mortgage. I don't think I can deduct escrow payment made by endbuyer like Mortgage Insurance premiums, property taxes and insurance. Correct!
As I was reading IRS pub 936 and IRC Sec 453, I came across IRS Publication 537 (Installment Sales). I am not sure my real estate wrap around transaction follows Pub 537. I purchase wrap-around mortgage note from another company. My LLC did not sell the property with an installment note. Let me know expert thoughts thanks
