The RV was purchased with a home equity loan a few years ago. We took out an equity loan on our rental home for use to build a garage at our main home. Can we deduct the rental home interest and where?
No,Unless you use the proceeds for improving the rental property, or purchasing another rental property, you may be losing a deduction. For example,, If you mortgage your rental property and use the proceeds to buy a \personal residence, NONE of the INTEREST you pay will be deductible.
If you purchase personal use assets, such as a car or boat, or use the proceeds to payoff a credit card, NONE of the interest is deductible.
When you refinance a rental property for more than the previous outstanding balance, the portion of the 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://taxmap.ntis.gov/taxmap/pubs/p527-002.htm#TXMP0c5b820b
No,Unless you use the proceeds for improving the rental property, or purchasing another rental property, you may be losing a deduction. For example,, If you mortgage your rental property and use the proceeds to buy a \personal residence, NONE of the INTEREST you pay will be deductible.
If you purchase personal use assets, such as a car or boat, or use the proceeds to payoff a credit card, NONE of the interest is deductible.
When you refinance a rental property for more than the previous outstanding balance, the portion of the 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://taxmap.ntis.gov/taxmap/pubs/p527-002.htm#TXMP0c5b820b