Discussion:Excess Mortgage Interest - Investment Interest?
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Discussion Forum Index --> Advanced Tax Questions --> Excess Mortgage Interest - Investment Interest?
Discussion Forum Index --> Tax Questions --> Excess Mortgage Interest - Investment Interest?
| 18 June 2008 | |
| I have a client with primary residence in Denver and vacation/2nd home (non rental) in Vail with total mortgages in excess of $1m. Thoughts of treating the portion of the interest above $1m being from the Vail home as "investment" form 4952 interest and not "personal interest"? He did 1031 into this Vail home two years ago. Thx for your thoughts..... | |
Death&Taxes (talk|edits) said: | 19 June 2008 |
| Save a kitten; there are discussions on this to be found by using the search block to the left. | |
Michaelstar (talk|edits) said: | 19 June 2008 |
| No - on investment interest if 2nd home is really being used a 2nd non rental home. Follow D&T's lead and you'll find lots on this. | |
| 19 June 2008 | |
| Agree with the above. No. Seems to me like the 1031 was a stretch in the first place. Was the interest on the first home (the one that was 1031'd into the vacation home) shown as investement interest or as mortgage interest? Just wondering. | |
| 20 June 2008 | |
| After re-reading the latest IRS safe harbor rules, the original home could have also been reported on schedule E using the vacation rules. But in either case, it would seem that the new "vacation" home must also be rented out at least a certain amount of time to qualify for the safe harbor. | |
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