TaxGuyBill
Level 15
12-06-2019
05:10 PM
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If a $750,000 loan is taken on Property C, then Property C can't take any deduction. That loan did not do anything for Property C.
However, Property B can take the interest on the portion for the $500,000. It is essentially just refinancing the loan.
Property A can't take any deduction. Although it is refinancing Acquisition Indebtedness, another requirement for the personal interest deduction on Schedule A is that the loan must be against that personal residence.