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TurboRush
New Member

Do I need to claim mortgage interest on rental property as an expense for the property?

I have a rental property (I do not live in it) with passive losses carried over from last year. If in include my mortgage interest as part of the rental properties expenses I show a loss on the property and my refund is ~$50. However, if I do not include the mortgage interest as an expense towards the rental I show a profit on the property and if I claim the mortgage interest "normally" (don't count it as an expense of running the rental) my refund is in the neighborhood of $700. Do I HAVE to claim it as an expense for the rental or can I declare it as if it wasn't a rental?
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ChelsiE2
New Member

Do I need to claim mortgage interest on rental property as an expense for the property?

Yes, you have to claim this as a rental expense.  You may not declare this amount as if it were not a rental.  

If you pay Mortgage Interest Expense on a Rental Property, the only place the IRS will allow you to deduct it is Schedule E.  

You may only use the Mortgage Interest Deduction on Schedule A for personal use properties.

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1 Reply
ChelsiE2
New Member

Do I need to claim mortgage interest on rental property as an expense for the property?

Yes, you have to claim this as a rental expense.  You may not declare this amount as if it were not a rental.  

If you pay Mortgage Interest Expense on a Rental Property, the only place the IRS will allow you to deduct it is Schedule E.  

You may only use the Mortgage Interest Deduction on Schedule A for personal use properties.

View solution in original post

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