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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11612
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have 2 rental properties. I will be paying off one shortly.

Customer Question

I have 2 rental properties. I will be paying off one shortly. My question is this: If I take the money from the paid off rental and apply it to the second property, can I use this as a write off since it is still going towards a rental property?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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Could I get you to re-state your question Cheri? I'm not sure I'm following.

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Are you asking about taking the proceeds of sale from one property and using it ton pay down the debt of the other?

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Or are you asking about the additional revenue from the first property that would now be there because there's no mortgage on the first property after paying it off?

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Interest, depreciation, and any other ongoing rental costs are always deductible on schedule E ... but the mortgage itself (because you weren't taxed on the income when you received the loan), isn't deductible when you pay it back.

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Have I understood your question?

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let me know and we can go from there

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Lane

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I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986

Expert:  Lane replied 1 year ago.

Hi,

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I’m just checking back in to see how things are going

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Did my answer help?

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Let me know…

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Thanks,

Lane

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