I have an LLC that owns and rents residential property. In 2016 I lived in one of the homes owned by the LLC. Of course I cannot write off the mortgage interest on the loan on my personal income taxes, but may I deduct the interest as a business expense? In other words, does the fact that one of the rental homes is my primary dwelling change the rules regarding expensing the interest on that home? Thanks.

? I have an LLC that owns and rents residential property. In 2016 I lived in one of the homes owned by the LLC. Of course I cannot write off the mortgage interest on the loan on my personal income taxes, but may I deduct the interest as a business expense? ===>> As a general rule, you may deduct interest on money you borrow for a business or investment activity, including being a landlord.you can claim mortgage interest payments to banks and other financial institutions on loans used to acquire rental property
? mortgage interest payments to financial institutions on loans used to improve rental property
? interest on credit cards for goods or services used in a rental activity, and
? personal loans for any item used in a rental activity. you only deduct the interest you pay on a loan to purchase or improve a rental property.


In other words, does the fact that one of the rental homes is my primary dwelling change the rules regarding expensing the interest on that home======> To claim the mortgage interest deduction for your own home, you'll need to itemize deductions by filling out Sch A of your 1040 long-form tax return. You need to enter the interest that you paid over the tax year on line 10 or 11 of the form, and total it up with all of your other deductions on line 29. Carry those deductions over to line 40 of your 1040 tax return