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Tax/Legal Question Re: Investment Property
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MrsGT
LIF Infant
Member since 9/08 51 total posts
Name:
J
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Tax/Legal Question Re: Investment Property
Does anyone know if I can still deduct the mortgage interest in addition to the monthly loss I am taking on a house that I am renting out? I'm thinking about buying another house and renting out my current one. I'd lose money every month because my mortgage is higher than what I could get in rent. But, I may still consider this as long as I can continue to deduct the loan's interest on this "investment" property as well as deduct the monthly loss. Anyone know? Thanks in advance.
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Posted 10/2/08 8:20 AM  |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Tax/Legal Question Re: Investment Property
I'm not sure if you can deduct the difference between your mortgage payment and the monthly income you would receive as a loss but, you can deduct your mortgage interest.
We have a rental property and we record any money received from rent as income and deduct the interest portion of the mortgage. The loss we take each year is for depreciation and any updates that need to be made. We have been receiving less in income than we've paid out (ours is a weekly rental and it is handled through a rental agency).
There is a limit in how much of a loss you can take each year too based on your AGI.
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| Posted 10/2/08 8:52 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Tax/Legal Question Re: Investment Property
Posted by MrsGT
Does anyone know if I can still deduct the mortgage interest in addition to the monthly loss I am taking on a house that I am renting out? I'm thinking about buying another house and renting out my current one. I'd lose money every month because my mortgage is higher than what I could get in rent. But, I may still consider this as long as I can continue to deduct the loan's interest on this "investment" property as well as deduct the monthly loss. Anyone know? Thanks in advance.
Honestly if you own more than one house it's usually best to work with an accountant. There can be a lot of items that are deductable on investment property, especially if you are taking a loss every month.
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| Posted 10/2/08 10:00 AM |
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DanaRenee
Fitness Junkie!
Member since 6/06 6470 total posts
Name:
Dana
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Re: Tax/Legal Question Re: Investment Property
I re-read your post and had to edit!
Your interest deduction would increase your loss on those properties...but losses are limited.
Not to mention, if you take out another mortgage on your new home chances are your interest for the first few yrs would be higher than that your old home....thereby increasing your deduction and tax savings.
Message edited 10/2/2008 1:51:57 PM.
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| Posted 10/2/08 10:21 AM |
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