@M-MTax wrote:
Agree with @Critter-3 .......... The interest deduction is set out in Sec. 163 and there doesn't seem to be the same limitations as there are for personal residential mortgage interest......qualified residence interest.....OR investment interest which is limited to investment income among other things.
I think you are reading sec 163 too broadly. I believe this would be investment interest under 163(d). If you own an investment property free and clear, and took out a mortgage to go gambling in Las Vegas, that is surely not deductible business interest, even though it is secured by the investment property. Investment interest is only deductible up to net investment income. Sec 163(d)(1).
