Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-16-2011, 10:40 AM
Junior Member
 
Join Date: Feb 2011
Posts: 2
Are loan fees from refinance of primary home deductible?

I purchased my first rental property in 2010. It was done with 2 sources of funding. One was a commercial loan directly against the rental property. The second was from a refinance of my primary home loan and I used the remaining equity to purchase the rental. My question is: is there a way that I can deduct a portion of the applicable fees from the primary home refinace? For example, if it cost $1000 for the title insurance, $100k was used for the primary home and $50k was used to purchase the rental, can I deduct $333. Makes sense to me that I can but I'm not sure about the rules. Any help would be appreciated!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-17-2011, 04:47 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“ My question is: is there a way that I can deduct a portion of the applicable fees from the primary home refinace?”---->I guess negative; the interest on your primary home equity loan that you used the proceeds to buy your first rental income property can not be deductible; you can’t write off the interest you pay on the home equity loan as a rental property expense( or as a business expense of the rental property) . However, you might want to use the primary home equity loan to purchase the property and then take out a home equity on the business property. Once you have a loan that is tied directly to the rental property, you can write off the interest and any applicable costs associated with getting your first rental property.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Deducting loan fees Hiltie Itemized Deductions 0 02-16-2011 10:09 AM
home refinance with cash out for home improvements sharipat Miscellaneous 0 04-08-2010 02:54 PM
Buying a business with home refinance dollars CoffeeNut Miscellaneous 0 01-10-2010 09:16 PM
First Time Home Buyer Credit - refinance into existing property? Freefall_Doug Homeowner Tax 0 08-11-2009 10:53 AM
Are Home Equity loan interest deductible on my personal tax return? Adam Itemized Deductions 1 03-23-2007 11:36 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.