Mortgage interest

[keydon]

I will shortly be moving from my current residence to a home I recently inherited from my mother. I plan on using my current residence as rental property. It will be totally paid for in 6 years. How do I treat the mortgage interest on this property on my Federal income taxes? Obviously I have alwasys included it in my itemized deductions, but now that it will not be my primary residence, but rather a revenue generated residence, how do I claim the interest on the mortgage? I live in Oklahoma.

 

[loku]

Rental expense

You will have to attach a Schedule E to your income tax return to show the income from the rental. On that schedule you will deduct all the expenses of the property, including the mortgage interest.