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Tax, SDIRAs & Cost Segregation

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Abdulmatin Sanni
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  • Baltimore MD
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Can Interest Be Deduction if Hard Money was Used

Abdulmatin Sanni
  • New to Real Estate
  • Baltimore MD
Posted Jan 4 2023, 18:00

I understand that mortgage interest can be deducted from taxes, but does this still apply if hard money was used to purchase the property?

For example, I borrowed $200k from an HML, and this was all invested into the property, the interest was at 12% a year, can this interest be deducted?

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied Jan 4 2023, 18:10

Yes. The interest is a business expense. 

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Abdulmatin Sanni
  • New to Real Estate
  • Baltimore MD
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Abdulmatin Sanni
  • New to Real Estate
  • Baltimore MD
Replied Jan 4 2023, 18:12

Can Interest be **Deducted if Hard Money was Used

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Abdulmatin Sanni
  • New to Real Estate
  • Baltimore MD
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Abdulmatin Sanni
  • New to Real Estate
  • Baltimore MD
Replied Jan 5 2023, 15:55
Quote from @Russell Brazil:

Yes. The interest is a business expense. 

Alright, Thank you.

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied Jan 5 2023, 21:30

Yes