รดรด

Can I Deduct Mortgage Interest on a Rental Property?

You can claim the home mortgage interest deduction on your main home and a second home, but what about rental properties?

By
Laura Adams, MBA,

Q. My daughter is at college and I want to buy a house for her to live in. If I rent out the extra bedrooms to roommates, can I still deduct my mortgage interest paid on the house?

A. You can claim the home mortgage interest deduction on your main home and a second home. However, if you rent out your second home and don’t live in it for part of the year, then it must be treated as a rental property for tax purposes.

Buy Now

In most cases, the expenses of renting a property—such as mortgage interest, property taxes, insurance, advertising, and maintenance—can be deducted from your rental income. This offsets and reduces your taxable income, which is a good thing!

You report income and expenses for a rental on Schedule E (Form 1040).Take a look at IRS Publication 527, Residential Rental Property for more information and a complete list of tax-deductible rental expenses.

Other Links You Might Like:
Who Can Deduct Mortgage Interest?
5 Clever Ways to Save More Money
How to Save Money to Buy a Home, Part 1
25+ Best Tools for Money Management and Productivity

Get the Money Girl Book!

Looking for more money advice or a great gift? Pick up a copy (or several!) of Money Girl’s Smart Moves to Grow Rich. It tells you what you really need to know about money without bogging you down with what you don’t. Get the ebook version or paperback at your favorite book seller today!

Follow Me on Pinterest

House with "For Rent" Sign from Shutterstock

The Quick and Dirty Tips Privacy Notice has been updated to explain how we use cookies, which you accept by continuing to use this website. To withdraw your consent, see Your Choices.