Can I deduct mortgage interest on a piece of land containing only a storage building that is used for my personal storage and does not generate any income?

It has been suggested that I enter it as investment interest but that requires an income to be generated and I have no income generated. I use the building to store my collectible cars.

A local tax person said that if I have insufficient room on my home property and therefore bought this remote property, I can deduct the mortgage interest. Not sure I agree with this.

180

1 Best answer

Expert Alumni

Jun 6, 2019 1:25:34 AM

Unfortunately, you cannot deduct this interest exactly for the reasons you have mentioned.

You can choose to capitalize it and add it to the cost basis of the land.

Expert Alumni

Jun 6, 2019 1:25:34 AM

Unfortunately, you cannot deduct this interest exactly for the reasons you have mentioned.

You can choose to capitalize it and add it to the cost basis of the land.

Why sign in to the Community?

Can I deduct mortgage interest on a piece of land containing only a storage building that is used for my personal storage and does not generate any income?