Tax deduction on 2nd mortgage from primary residence to purchase rental property

Mondragon123 · ‎October 18, 2022

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?

Anonymous_ · ‎October 19, 2022

@Mondragon123 wrote:

Is the interest paid on the 2nd mortgage tax deductible?

Yes, through the concept of tracing.

Ref: Treas. Reg. §1.163-8T(a)(3)

Anonymous_ · ‎October 19, 2022

@Mondragon123 wrote:

Is the interest paid on the 2nd mortgage tax deductible?

Yes, through the concept of tracing.

Ref: Treas. Reg. §1.163-8T(a)(3)

TomD8 · ‎October 19, 2022

You might also find this web reference helpful:

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Do you have an Intuit account?