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  • Re: I refinanced my primary residence and used the funds to help purchase a rental property. Can I deduct the interest on this loan from the rental income?
Anonymous_
Anonymous_
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Investors & landlords

Yes, you can use the tracing rules and deduct the interest paid provided the proceeds of the loan are used for a rental activity.

 

See https://www.irs.gov/instructions/i1040se#idm140630720082288 and  https://www.irs.gov/publications/p535

‎January 2, 2020 8:34 AM
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