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jnloiler
New Member

I sold my home in 2015 for less than I owed. I am still making payments on the rest of the balance. I just bought a new home also. Can I write off interest on the old mortgage also?

This was a private home loan.  I have 7 years left to pay the remaining balance.  This year, due to owning a home, I will have enough to write off so that I get better than a standard deduction.
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juliob
Level 2

I sold my home in 2015 for less than I owed. I am still making payments on the rest of the balance. I just bought a new home also. Can I write off interest on the old mortgage also?

Unless the balance is secured by the new home, it does not qualify as mortgage interest. Therefore it becomes a personal loan. Interest on personal loans are not deductible. - https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Deducting-Mortgage-Interest-FAQs/INF12...

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juliob
Level 2

I sold my home in 2015 for less than I owed. I am still making payments on the rest of the balance. I just bought a new home also. Can I write off interest on the old mortgage also?

If you would like more information on secured debt, please read Section - Secured Debt on page 3 of Publication 936: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p936.pdf">https://www.irs.gov/pub/irs-pdf/p936.pdf</a>
juliob
Level 2

I sold my home in 2015 for less than I owed. I am still making payments on the rest of the balance. I just bought a new home also. Can I write off interest on the old mortgage also?

Unless the balance is secured by the new home, it does not qualify as mortgage interest. Therefore it becomes a personal loan. Interest on personal loans are not deductible. - https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Deducting-Mortgage-Interest-FAQs/INF12...

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