- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Since I do not earn enough to itemize, can I claim my primary home interest on schedule E for my rentals? I use the money to capitalize my rentals because the low rates.
Topics:
December 6, 2019
2:42 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
"...can I claim my primary home interest on schedule E for my rentals?"
First, you must have records to show how the proceeds of the debt were used.
See https://www.irs.gov/instructions/i1040se#idm140630720080112
Further, and perhaps more importantly, any portion of the interest that is not related to rental use cannot be deducted as a rental expense.
See https://www.irs.gov/publications/p527#en_US_2018_publink1000218987
December 6, 2019
3:43 PM
527 Views
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
Absolutely not. To do so would be fraudulent and you'd be 100% guaranteed an audit.
December 6, 2019
3:48 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
It would be fraudulent if the borrower represented that the proceeds of the loan were allocable to the borrower's rental activities when, in fact, they were not.
December 6, 2019
4:06 PM
520 Views