Taxpayer purchased a third residence in 2009 as an investment and his daughter is currently living in house. If taxpayer had investment income, would taxpayer be able to write off the mortgage interest of his third home? Would third home be considered investment expense being his daughter is living in home? Trying to find a way that taxpayer could write off this interest. He has very little passive investment income. Any suggestions?
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I cannot see how this could be an investment expense unless daughter pays FMV rent. -
I believe this would fall into the category of personal property. The taxpayer is allowed Real Estate taxes on more than 2 homes. Deductible mortgage intrest is limited to only 2 homes at one time.Comment
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Could the TP access equity in his 1st & 2nd homes to pay off mtge on third? Then he might come under the allowable rules for deductibility.Comment
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