First of all, I would like to apologize for starting yet another thread for the interest tracing rule. But since I do not want to derail the other thread so the OP can get the answer he wants. I decide to start a new one for my own question. Anyway, here is my question:
You borrowed an equity loan from a rental property and used it to purchase a partnership interest (which means you used the loan proceeds to purchase a business together with your partner). You physically work in the partnership and receive a guaranteed payment more than enough to justify that it is fulltime work. Can you deduct the mortgage interest as an expense in any way? If yes, where do you claim it?
Thank you in advance for your help.
You borrowed an equity loan from a rental property and used it to purchase a partnership interest (which means you used the loan proceeds to purchase a business together with your partner). You physically work in the partnership and receive a guaranteed payment more than enough to justify that it is fulltime work. Can you deduct the mortgage interest as an expense in any way? If yes, where do you claim it?
Thank you in advance for your help.
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