I own a rental property in arizona.. I paid cash on the house?
April 25th, 2010 | 
Author: bу taking іt οff mу fundamental residence іn california. I now pay a finance payment οn thаt loan, саn I write οff thе entire finance payment аѕ a tax write οff, οr interest οnlу іn view οf thе fact thаt іt іѕ a rental property???
Posted in Rental Properties
NOPE. Need a 1099, and yours will be on home, not on rental property. Prior plotting prevents ppp. . . . .
No and No – in view of the fact that the finance is on your main residence not the rental.
You would do well to invest in an experienced Tax Preparer as there are numerous savings to be had on rental property IF you do it right.
Excellent Luck.
The rental property building (but not the land) can be depreciated straight-line over 27.5 years (assuming its a residential rental). Loan principle is never deductible.
Looking only at tax consequences, you financed the rental incorrectly. Any interest deduction you may have is now subject to the home justice limitations and can only be deducted on Schedule A. You may want to take out a finance on the rental and pay off the present loan, that will make the interest deductible on Schedule E.
Neither. If the loan isn’t on the rental property, you can’t write off interest on your schedule E. On schedule E you will take depreciation on the house though.
In view of the fact that the loan is on your confidential residence, you can caim the interest on schedule A if you itemize, otherwise you can’t claim it.