Rental Property Loss vs Standard Mortgage Deduction
I am in the process of buying a house for my parents who will not be paying me any rental income, I will be making all payments. I will own the property and have been approved for an investment property mortgage. Because I make more than $150,000 a year, I realize that I will not be able to offset any of the taxes from my wages with the rental income losses, but if I was to get an investment mortgage can I still claim the standard mortgage interest and property tax deductions?
I assume that there is no way for me to deduct all the expenses (including renovations, mortgage origination expenses, bills, etc.) if I lost the house as a second home on my tax return even though the mortgage Lon was originated as an investment property?
Most Popular Reply
If you are putting your parents in it....it might behoove you to have the property as a 2nd home as opposed to an investment property so that you can deduct taxes and mortgage interest. Check with @Brandon Hall to be sure.
- Russell Brazil
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