Mortgage Interest Deduction on Investment

[Kareem Shihab]

Hi!  I'm new here and I have a basic question. I own a Single Family home and deduct my mortgage interest. If I am buying an investment property am I also allowed to deduct my Mortgage interest? For investment properties (assuming I owned 10) is there a limit to how much mortgage interest you could deduct in total? Finally could you deduct mortgage interest in one property to reduce your tax liability from different property?  

Thanks!

K

[Steven Hamilton II]

Your personally interest is on Schedule A.

Your rental interest is on Schedule E.

They will have absolutely no effect on each other. 

The only limit is on your personal property of 1M (Pre 2018) or 750k principal limit after December of 2018. 

You can only deduct the amount that you have invested into the property so if you refinance and take out funds to buy a vehicle you cannot deduct the portion that was used for persona uses. It has to remain used for the rental or a new rental. You can look up the Interest Tracing Rules for more information.