I currently have a mortgage on my residence and I'm not working, so I use that rental income to help pay my mortgage. or should I take a loan out on the rental property and pay off my current residential home?
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You lose a rental interest deduction , If the LOC was used for personal purposes, it is not deductible against rental income.
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.
You lose a rental interest deduction , If the LOC was used for personal purposes, it is not deductible against rental income.
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.
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