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Mortgage Interest Deduction on Vacation Rental

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milleph

Junior Member
I can't seem to find the answer to this question anywhere. I rent out our second home on a full-time, short-term basis. Prior to doing this I did not claim a mortgage interest deduction for the mortgage on that property because the mortgage on my primary home exceeds the mortgage balance limit. Now that I have taxable rental income on the second home can I offset the mortgage interest expense against that income?
 


LdiJ

Senior Member
I can't seem to find the answer to this question anywhere. I rent out our second home on a full-time, short-term basis. Prior to doing this I did not claim a mortgage interest deduction for the mortgage on that property because the mortgage on my primary home exceeds the mortgage balance limit. Now that I have taxable rental income on the second home can I offset the mortgage interest expense against that income?
You can on a pro-rated basis...pro-rated between personal use time and rental use time. The same applies to property taxes and homeowners insurance.
 

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