Interest expense on a schedule E

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  • Jeter2016
    Junior Member
    • Apr 2016
    • 27

    #1

    Interest expense on a schedule E

    If a client owns rental property, can they take a mortgage out on the property and take the interest expense to purchase a piece of land.
    This land is being purchased to build a personal home in the future.

    I do realize that they cannot take a mortgage on their primary home to purchase the home but how about on their schedule E.
  • TaxGuyBill
    Senior Member
    • Oct 2013
    • 2321

    #2
    If the mortgage amount is not used for the rental property, no, the interest is not deductible on Schedule E.

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