deductible interest on personal loans to buy income property

[dotkam381]

thank you david miller for your response. i was finally able to get thru to the IRS help line. Their answer was yes BUT only for the months that the unit is rented. This is because it is a vacation home and is closed up for the winter; only rented out 3 -4 months a year. don't know which way to go now...personal loan or home equity home??

[loku]

I believe the IRS answer may not have been correct, and if the property is closed down when not rented, you can deduct all the interest you pay as rental expense. The property is rental property if you use it for rental purposes only. There may be an issue if you purchased the property for speculative purposes and are renting it as a secondary purpose for having the property.