Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

My client has a mortgage on vacant land. Is that interest regarded as investment interest and thus only deductible to the amount of rental income?

CS
Level 1
 
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
sjrcpa
Level 15

Investment interest is deductible to the extent of investment income. i don't think rent counts as investment income.


Ex-AllStar

View solution in original post

0 Cheers
4 Comments 4
sjrcpa
Level 15

Investment interest is deductible to the extent of investment income. i don't think rent counts as investment income.


Ex-AllStar
0 Cheers
itonewbie
Level 15
I though the OP meant it could be deducted if that piece of land was rented out but agree with you in that context.
---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
sjrcpa
Level 15
It is hard to tell what OP meant.

Ex-AllStar
0 Cheers
itonewbie
Level 15

Yes but your client may elect to capitalize that as part of the carrying charges under §266.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers