We took out a second mortgage on our primary residence and purchased a rental property. Is the interest paid on the 2nd mortgage tax deductible?
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@Mondragon123 wrote:
Is the interest paid on the 2nd mortgage tax deductible?
Yes, through the concept of tracing.
See https://www.irs.gov/publications/p936#en_US_2021_publink1000229983
Ref: Treas. Reg. §1.163-8T(a)(3)
@Mondragon123 wrote:
Is the interest paid on the 2nd mortgage tax deductible?
Yes, through the concept of tracing.
See https://www.irs.gov/publications/p936#en_US_2021_publink1000229983
Ref: Treas. Reg. §1.163-8T(a)(3)
You might also find this web reference helpful:
https://www.rocketmortgage.com/learn/can-you-deduct-second-mortgage-interest
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