Recoup downpayment

[Jason Robinett]

Bp community, Can my initial downpayment be recouped as an expense against my rental income since these funds were already taxed? JR

[Jon Holdman]

If you mean the down payment to get a loan, no, that's not deductible.  Neither is the principal part of your payment.  Think of your property as a bank account.  The down payments and principal payments are transfers.  These payments are transferring money from your your bank account to the equity in the property.  So, not deductible any more than transferring money from your checking account to your savings account.