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URL:  https://boards.fool.com/you-need-to-be-aware-that-you-cannot-deduct-the-35108862.aspx

Subject:  Re: Buying a 2nd Rental Property Date:  5/13/2022  5:02 AM
Author:  foo1bar Number:  14442 of 14478

You need to be aware that you cannot deduct the interest payments on a cash-out loan for a rental property unless the cash is spent on the property that secures the loan.

I do not think that is true.

https://www.irs.gov/pub/irs-pdf/p535.pdf

Reading chapter 4, I think any loan's interest (including HELOC on the 1st rental property or even an unsecured loan) could be used as a business expense for the 2nd rental. That is, assuming that you can show that the loan's proceeds were used for buying the 2nd rental. (pretty easy to show $ from a loan going into a separate checking account or money market account, and then going from there to the downpayment for the property, and thereby prove that's what you used the money for)
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