How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark D Your Own Question
Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
Type Your Tax Question Here...
Mark D is online now
A new question is answered every 9 seconds

If I purchase an investment property (to rent out) and pay

Resolved Question:

If I purchase an investment property (to rent out) and pay for it with cash that I obtain from taking a new mortgage on my personal property (a condo that's currently paid off), is the mortgage interest a deductible business expense?
Or would this only work if the mortgage was on the actual rental property?
Submitted: 7 years ago.
Category: Tax
Expert:  Mark D replied 7 years ago.

Interest claimed on Schedule E (rental activity) does not need to be secured by the rental property. However, you must be able to show (if audited) that the borrowed monies were used on the rental property for the rental activity. Please let me know if you have further questions.


Mark D
Mark D and other Tax Specialists are ready to help you

Related Tax Questions