If I refinance my primary residence to include my rental property and HELOC (so that all my loans are under 1 home loan) will I still get a mortgage interest deduction?

[mikejsplace]

Current Loans:

• Primary Home Loan   =  0                 (worth $750,000)
• Rental Property Loan = $120,000     (worth $150,000)
• HELOC  Loan  =  $65,000

After Refinance:

• Primary Home Loan  =  $185,000

[DS30 · Accepted solution]

Yes - you can still claim the home loan interest on your return. However, if your new loan is actually secured by your primary residence, you will need to include the mortgage interest as an itemized deduction on Schedule A only. (No part of the mortgage interest would be allowed as a rental expense on Schedule E.)

To enter home mortgage interest and property tax information in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "Schedule a" in the search bar then select "jump to Schedule a". TurboTax will guide you in entering this information.

[mikejsplace]

Thank you so much for the quick response and the great explanation.

[DS30]

You are very welcome 🙂