If I took out a 15 year loan for a home/land and use…?

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the property as a rental, do I count the interest only on the mortgage as an expense on my taxes or the whole amount of the property? The mortgage is a 15 year with a 3 year renewal.

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2 Comments
  1. Reply
    twv706
    May 18, 2011 at 10:43 am

    You count the interest as a itemized deduction plus expenses made to offset your income form rent for fixing up the property if it is used as a rental property.

  2. Reply
    Leo N
    May 18, 2011 at 11:24 am

    You cannot deduct the whole amount of the property. What you can deduct is all of your business expenses, which includes any money it cost to purchase the property, including fees, all of your mortgage payments, any fix up costs, and any utility costs.
    I am pretty sure that you can do this just as an individual, as long as you file it as a small business. Check with a CPA or lawyer for the schedule you need to fill out.

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