10shooter
New Member

If I take out a home equity loan on my rental property to pay off my student loans, can I claim the interest as a business expense?

 
AlanT
Expert Alumni

Investors & landlords

No,  if any portion of the loan proceeds is used for something other than the rental property, the portion of interest allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. Chapter 4 of Pub. 535 explains mortgage interest in detail: https://www.irs.gov/publications/p527/ch01.html

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