Philadelphia, PA · Member since 2017 · 38 posts · 8 votes
seems under new tax bill..you cannot deduct investment property's mortgage interest from your tax bill. Only primary residence mortgage interest can be deducted. And no interest deduction for equity loan.
John, there are different impacts under the House bill and Senate bill.
For example, the House bill treats all passive income (which rentals generally fall under unless you are a real estate professional) as business income subject to 25% tax rate.
The Senate bill, on the other hand, has all pass through business income (including rentals, at least per my understanding) including sole proprietorships taxed at ordinary income rates (which are lower than current law) and would give a deduction of 23% off of the net income if certain criteria are met.