Mortgage Interest Deduction

September 30, 2022

Can you Deduct Mortgage Interest on Investment Property?

Do you own an investment property, and are you wondering whether you are eligible for a mortgage interest deduction? This article will give an explicit answer to the question of mortgage interest deduction on an investment property. There are fees that you can write off on your tax return if you own rental property and receive rental revenue from it. These include maintenance, property taxes, depreciation, replacement, and mortgage interest. A tax incentive for homeowners for rental property is the mortgage interest deduction. Mortgage Interest Deduction The mortgage interest deduction is a typically categorized deduction that enables homeowners to exclude from taxable income the interest they pay on any loans used to finance the construction, acquisition, or improvement of their property. Loans for second and vacation homes are also eligible for the mortgage interest deduction, subject to certain restrictions. This […]
September 29, 2022

Can I Deduct Mortgage Interest On Rental Property?

It makes financial sense to utilize all of the available tax incentives if you’re considering purchasing a property for vacations, rental income, or a potential retirement residence. After all, you can dramatically lower the cost of having the property by claiming tax deductions for mortgage interest, real estate taxes, and rental charges. The Mortgage Interest Deduction was reduced due to the Tax Cuts and Jobs Act (TCJA), among other changes to how tax deductions operate. The mortgage interest deduction is a tax break for homeowners that occasionally applies to real estate used as a rental property. You can deduct certain expenses from your taxable income if you own rental property and receive rental revenue from it. One of them just so happens to be mortgage interest. Even with these modifications, beneficial tax incentives can lower the cost of owning a […]