Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
ketchersid
New Member

Since I do not earn enough to itemize, can I claim my primary home interest on schedule E for my rentals? I use the money to capitalize my rentals because the low rates.

 
3 Replies
tagteam
Level 15

Since I do not earn enough to itemize, can I claim my primary home interest on schedule E for my rentals? I use the money to capitalize my rentals because the low rates.

"...can I claim my primary home interest on schedule E for my rentals?"

 

First, you must have records to show how the proceeds of the debt were used.

 

See https://www.irs.gov/instructions/i1040se#idm140630720080112

 

 

Further, and perhaps more importantly, any portion of the interest that is not related to rental use cannot be deducted as a rental expense.

 

See https://www.irs.gov/publications/p527#en_US_2018_publink1000218987

Carl
Level 15

Since I do not earn enough to itemize, can I claim my primary home interest on schedule E for my rentals? I use the money to capitalize my rentals because the low rates.

Absolutely not. To do so would be fraudulent and you'd be 100% guaranteed an audit.

 

tagteam
Level 15

Since I do not earn enough to itemize, can I claim my primary home interest on schedule E for my rentals? I use the money to capitalize my rentals because the low rates.

It would be fraudulent if the borrower represented that the proceeds of the loan were allocable to the borrower's rental activities when, in fact, they were not.

Dynamic AdsDynamic Ads
Privacy Settings
v