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solarhot
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I don't have mortgages on my rental houses but I have a business loan which I used to buy rental houses. Where do I put the interest expense?

 
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I don't have mortgages on my rental houses but I have a business loan which I used to buy rental houses. Where do I put the interest expense?

As long as it related to acquiring, remodeling or used for the rental it is deductible (interest only) on the Sch E as a rental interest expense. 

  • Mortgage interest payments to banks and other financial institutions on loans used to acquire rental property is deductible interest that belongs on the Sch E rental. 
  • mortgage interest payments to financial institutions on loans used to improve rental property
  • interest on credit cards for goods or services used in a rental activity, and
  • personal loans for any item used in a rental activity.

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1 Reply

I don't have mortgages on my rental houses but I have a business loan which I used to buy rental houses. Where do I put the interest expense?

As long as it related to acquiring, remodeling or used for the rental it is deductible (interest only) on the Sch E as a rental interest expense. 

  • Mortgage interest payments to banks and other financial institutions on loans used to acquire rental property is deductible interest that belongs on the Sch E rental. 
  • mortgage interest payments to financial institutions on loans used to improve rental property
  • interest on credit cards for goods or services used in a rental activity, and
  • personal loans for any item used in a rental activity.

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