Convert home into rental and interest expense

[jsonp]

I currently own a home#1, primary home with homestead. I want to do a cash out refinance and take the money out about 80K to pay for new home#1 i will be purchase as new primary home. Home#1 i plan to rent it out. My question is since my home#1, once i convert to rental. can the interest of 80K be treat as expense interest?

[AmeliesUncle]

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@jsonp wrote:

I currently own a home#1, primary home with homestead. I want to do a cash out refinance and take the money out about 80K to pay for new home#1 i will be purchase as new primary home. Home#1 i plan to rent it out. My question is since my home#1, once i convert to rental. can the interest of 80K be treat as expense interest?

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No. 

The $80k was not spent on the rental property, so it is not a rental expense. 

In order for mortgage interest to be a personal itemized deduction on Schedule A, the mortgage must be on your residence where you live, which it is not.

[jsonp]

I mean to ask if the  mortgage interest can be use as rental expense on property i rent out home#1. 

[AmeliesUncle]

I already answered that in my first comment.

[jsonp]

Thanks for reply. so if i own a house as primary , i do a cash out refinance to take cash out. I live there for few month . then convert to rental. the mortgage rental is still cant be expense ?

[AmeliesUncle]

No, if it is not spent on the rental property itself (or for other rental purposes), it is NOT a rental deduction.