Article Date:
January 2006


Word Count:
92

 

 

Interest on Refinanced Rental


Three years ago, I refinanced my rental property, took out $60,000 of equity, and used the $60,000 for personal purposes. Since this loan is secured by my rental property, may I deduct the interest as rental property interest? (A.B., Millbury, MA)

 

No! You may not deduct the interest on the $60,000. The law contains tracing rules that require you to follow the money to its use. In your case, this is personal use. Thus, the $60,000 part ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Password


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee

Bradford Tax Institute

 
Subscription Services
4040 Civic Center Drive, Ste. 200
San Rafael, CA 94903
Telephone: (415) 446-4340

contactus@bradfordtaxinstitute.com
 
Editorial
1701 Pennsylvania Avenue, N.W., Suite 300
Washington, DC 20006
Telephone (202) 652-2293
Fax (202) 580-6559
contactus@bradfordtaxinstitute.com
 
© 2025 Bradford Tax Institute