When it comes to deducting mortgage interest on your home, the tax law is pretty straightforward.
But when it comes to deducting mortgage interest on your rental property, it’s a different matter entirely.
You see, Uncle Sam has set some traps for you that can cost you big time.
Want to learn how to avoid three major rental-property interest-deduction traps and come out unscathed and a lot richer?
Read my new article titled Tax Tips: Mortgage Interest on Rental Property—Avoid Traps, Maximize Your Deductions!
Three ways our fact-filled article can help you:
- We’ll show you how to avoid the passive-loss rules trap. This nasty trap can destroy your deductions for tax losses (where your interest deductions reside). And that can lose you the tax shelter benefits of your rental property. You’ll get the whole story when you read the full article.
- You’ll learn how to sidestep the dangerous refinancing trap. Most of the time, when you refinance your mortgage, you get to deduct the remaining unamortized points immediately. This is true unless you refinance with the same lender! If you do, you must continue amortizing the points from the old loan, but use the life of the new loan to calculate the amortization expense. Don’t worry. All will be explained when you read the full article.
- You’ll learn how to avoid the home-equity loan trap. Careful! Don’t use the proceeds of a home equity loan to help finance or improve a rental property and then deduct the interest as home equity interest. We’ll explain the consequences of making this serious error when you read the full article.