DianeW777
Expert Alumni

Investors & landlords

No.  The home is not your residence, therefore you cannot deduct the mortgage interest on your tax return.  The installment loan is reported showing principal and interest payments you received during the year.  

 

Per IRS Publication 936, the following information is important.

The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and isn't deductible.

  • Second home not rented out. If you have a second home that you don’t hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You don't have to use the home during the year.  (It's already sold).

  • Sale of home. If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of the sale.

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