My wife & I are retired. In 2019 we did a cash out loan on a second home which we own. We used all of that money to purchase a townhouse as a rental property. We were remodeling it for most of 2020 and finally had renters move in 8/2020. We did not claim any Schedule A interest on that loan in 2020. Both the properties are titled in our trust along with our primary residence.
Can I deduct the loan payment on the 2nd home loan as a business expense on the rental property for 2021?
