What is the proper treatment of seller rent back For FREE included in closing statement when purchasing a second home property? Can I deduct the first month's mortgage payment?

[Carl]

A rent back at no cost, is the same as having no rent back agreement at all. All you have is a seller occupancy agreement really.

@Anonymous_ can you weigh in on this please? I'm really not able to cite facts and pubs on this.

[Anonymous_]

I agree, but the mortgage interest only can be deducted, not the entire payment (which includes principal).