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ptbttax
New Member

Bridge loan interest deductible? Loan was promissory note secured by lien on 2nd home. No loan on 1st house, bought 2nd house, sold 1st house in 2.5 mo, paid bridge loan.

 
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PatriciaV
Expert Alumni

Bridge loan interest deductible? Loan was promissory note secured by lien on 2nd home. No loan on 1st house, bought 2nd house, sold 1st house in 2.5 mo, paid bridge loan.

Yes, the interest you paid on a bridge loan that is secured by your home may be reported as Mortgage Interest on Schedule A.

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2 Replies
PatriciaV
Expert Alumni

Bridge loan interest deductible? Loan was promissory note secured by lien on 2nd home. No loan on 1st house, bought 2nd house, sold 1st house in 2.5 mo, paid bridge loan.

Yes, the interest you paid on a bridge loan that is secured by your home may be reported as Mortgage Interest on Schedule A.

james-c-weber
New Member

Bridge loan interest deductible? Loan was promissory note secured by lien on 2nd home. No loan on 1st house, bought 2nd house, sold 1st house in 2.5 mo, paid bridge loan.

Which home is it declared against?  The first residence, which is sold or the second residence which was purchased?  Presumably the first, since the loan papers are against that.
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