Generally speaking yes, it would be tax deductible. Under the interest tracing regs, you look to what the loan disbursements were used for to determine deductiblity.
Generally speaking yes, it would be tax deductible. Under the interest tracing regs, you look to what the loan disbursements were used for to determine deductiblity.
Good conversation to have with your tax CPA/EA.
Thanks. It makes sense and I will keep records of where funds go and how they were dispersed. My cpa answered an email I sent to her, but I wasn’t sure I understood her .
She said
“As far as taking out a loan to finance another rental property, I’d expect it is much the same whether it is a personal loan or secured by your car.”
I wasn’t sure if she meant that a personal loan was tax deductible or not.