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Deductions & credits
Your interpretation is almost the same as my interpretation. That the money used for rental property is considered equity debt. If so, then you have to apply all principal to the equity balance. Then the schedule A deduction is not 30% of the total mortgage interest paid. It is a fixed amount (interest rate*150k) per year until the principal is reduced to 150k and then it is the entire mortgage interest after that.
‎October 11, 2024
9:08 PM