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can you deduct interest expense from an investment property?

I deduct interest from my home right now but if I buy an investment property and rent it out, can I deduct the interest expense from my taxes? vb, what do you mean I'm limited?

Public Comments

1. On form 4952. You are limited to a) the amount of investment income you have and b) it then goes to schedule A.
2. yes, and you can go on the IRS' website for more info.
3. Of course, this is the reason that investors buy real estate. You can go to the IRS webite to get the forms. I believe it is form 4592. You can also deduct the cost of repairs, but not improvements. So any time you spend money on property, it is to repair the place. :-)
4. Actually, if you buy real property to RENT, the mortgage interest is deductible on your SCH E along with other expenses (property tax, snow removal, repairs, etc.)