Rental Mtge Interest

[Burke]

Is there no particular limitation on rental property mortgage interest secured by the properties such as there is on primary homes and second homes?
Mtge interest now exceeds acquisition costs + improvements due to numerous re-fi's. Would not the excess be considered personal interest?

[erchess]

I don't think so

I'm not aware of any limits.

[S T]

Tracing Rules

Should we be tracking loans-refi's under the "Interest Tracing Rules" See TTB 4-14

Sandy

[JG EA]

Agree that tracing limits apply. For sure you can't take money out of a rental and buy a car and count it on the rental interest. But you can take the closing costs and amortize them on a rental (as long as no extra money is taken out that will not be used on the rental).