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sirgalavant
Returning Member

I'm paying mortage interest on a rental property that has not yet been placed in service. Can I claim interest payments? If so, where?

I purchased a rental home in late 2015 and paid interest in 2016. The home is not yet placed in service so I have not started depreciation on the home and expenses to repair.  I have paid interest on the loan in 2016.  Can I deduct the loan payments? Or, do I need to wait until the home is placed "in service"?
1 Best answer

Accepted Solutions
PaulaM
Employee Tax Expert

I'm paying mortage interest on a rental property that has not yet been placed in service. Can I claim interest payments? If so, where?

You can deduct the interest paid in the Your Home section. The home would be considered a second home until you place it in service.

  • In your open return, select My Account
  • Tools
  • Topic Search
  • Type '1098' in the box, then select GO
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
PaulaM
Employee Tax Expert

I'm paying mortage interest on a rental property that has not yet been placed in service. Can I claim interest payments? If so, where?

You can deduct the interest paid in the Your Home section. The home would be considered a second home until you place it in service.

  • In your open return, select My Account
  • Tools
  • Topic Search
  • Type '1098' in the box, then select GO
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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