Real Estate

Interest tax deduction question

  • Last Updated:
  • Jan 15th, 2018 7:41 pm
[OP]
Jr. Member
Nov 17, 2007
153 posts
71 upvotes

Interest tax deduction question

My friend owns a condo which was his primary residence but later he rented it out and become an investment property. This rental property was paid with cash.

He got a mortgage later and bought another townhouse which is his current primary residence. He now realizes that interests paid on the investment property is tax deductible - is there any way he can make this work?

The problem is that the mortgage is on his primary residence and the amount of the mortgage could exceed the value of the investment property so even if he is able to refinance, it could prove to be quite complicated. Any suggestions?

Thanks.
1 reply
Deal Addict
Jun 11, 2005
2669 posts
324 upvotes
you mean "he now realizes... not deductible"?

This is complicated. Interest deductibility is always tied to the current use of funds.

Should seek a professional accountant.

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