The limit for interest deduction is 2 properties.I am sure many of you guys here pay mortgageson more then 2 properties...is there any way you can take deduction on your 3rd and 4th property?
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
You can deduct mortgage interest on any of your investment properties however if it is a third Residence Inn you cannot you definitely can't adopt the property taxes for each and every property that you own.
Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
13y
Originally posted by Steven Hamilton II:
You can deduct mortgage interest on any of your investment properties however if it is a third Residence Inn you cannot you definitely can't adopt the property taxes for each and every property that you own.
.-Steven
Steven -- you really gotta stop posting using your cell phone!! Or get you one of those little mobile foldout keyboards, been meaning to do that myself. Assuming you weren't referring to hotels, that is. :)
Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
13y
I think people seem to confuse "the mortgage interest deduction". This is what is talked about on the news all the time. This is for you personal and 2nd personal residence. In investment properties you are not claiming this deduction, you are claiming a deduction based on business expenses. Mortgage interest is an expense of running a rental business, just as are utilities and insurance.
At least this is the way I have looked at it. I know if I am off Steven will correct me ;)
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
Vaishal Patel,
You can deduct mortgage interest on any of your investment properties; however, it will not be deducted in the same manner as the deduction for your Primary and secondary residence.
Also: You can deduct the property taxes of any property you own; however, this may not be beneficial due to Alternative Minimum Tax.
David Beard,
I agree. Sometimes I'm trying to quickly answer something and it seems to backfire this way.
Kyle Hipp,
That is correct. your mortgage interest for your rental property is a business expense on Schedule E or Form 8825.