L/O Tax Deduction

Can you deduct interest on properties that you are Lease/Optioning?

Thanks :-?

Comments(1)

  • NewKidinTown220th January, 2005

    If you are the tenant/buyer, the answer is no. You are paying rent, not mortage interest.

    If you are the landlord/seller, the answer is yes. Your mortgage interest is expensed against your rental income on Schedule E.

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