Investment Interest Expense
hey everyone, I was having a conversation with my boss & she asked if I’m writing off the interest on my properties as an expense. I had no idea this was even possible. Anyone else do this? If it matters my investment properties are in Arizona. Thanks !
#2 Tax, SDIRAs & Cost Segregation Contributor
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#2 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- Florida
Yeah, you you can deduct interest expense unless you are limited under 163(j).
Thank you for confirming this, I appreciate you!
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
Quote from @Wences Lopez:
hey everyone, I was having a conversation with my boss & she asked if I’m writing off the interest on my properties as an expense. I had no idea this was even possible. Anyone else do this? If it matters my investment properties are in Arizona. Thanks !
Getting tax advice from your boss is a problem right there. Unless she is an accountant. She may not know enough or, even worse, know enough to be dangerous.
That said, you absolutely should be deducting interest on your investment properties. The fact that you have not been doing it makes me wonder what else you have been overlooking. Get your tax returns reviewed by a real estate accountant. Good news: there's still time to fix your oversights for the last 3 years and get your money back if you left it on the table.
Yeah you’re right, I’m sure I’m overlooking a lot of things as I’m new to investing. I got my first rental in august 2021 & my second one the beginning of the year. I was “waiting” towards tax season for next year to look for a CPA but I’m guessing a wise thing to do is to look for one now. Thanks for your input!