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?
You'll need to sign in or create an account to connect with an expert.
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
taxquestion222
Returning Member
ja19584
New Member
dlarzik
Level 1
tdasha10
Level 2
moscosamykaill
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.