Mortgage Interest

Collapse
X
Collapse
 
  • Page of 1
  • Time
  • Show
Clear All
new posts
Previous template Next
  • peggysioux
    Senior Member
    • Sep 2006
    • 666
    #1

    Mortgage Interest

    Taxpayer purchased home in 2003 for $398,248 and refi'd in 05 bringing mortgage up to $500,000. The funds were not used for improvements, but rather to live on for the last couple of years. So, in 2009 they turned the residence into a rental. Would the interest now need to be prorated based on only the acquisition debt?
    Tags: None
    • JG EA
      Senior Member
      • Jul 2005
      • 2176
      #2
      Yes. And since the part that was equity is now not secured by their home it will not be deductible anywhere.
      TTB 4-11
      JG

        Comment

        Previous template Next

        Disclaimer

        Collapse

        This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

        Working...