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Deductions & credits
Although you will be able to deduct the mortgage interest for the house from Jan to July and the condo from July to Dec on schedule A, it will be limited to approximately $750K / ($700K + $500K) = 62.5% of the interest paid during this time. The interest paid on the house after converting to a rental is deductible as a rental expense on schedule E and not subject to this limitation.
‎July 24, 2024
10:44 PM