I'm trying to understand how tax rules work regarding rental properties and primary residences.
Let's say Bill does not own his home/primary residence, so no mortgage deduction there. However, he owns a rental property with his brother. As far as interest deductions are concerned, is Bill allowed to deduct a portion of the interest from the rental property mortgage on his taxes?
In what type of circumstances (if any) are interest deductions not allowed on rental properties? And does it matter if the tax filer owns a separate primary residence or not?
Thanks
Let's say Bill does not own his home/primary residence, so no mortgage deduction there. However, he owns a rental property with his brother. As far as interest deductions are concerned, is Bill allowed to deduct a portion of the interest from the rental property mortgage on his taxes?
In what type of circumstances (if any) are interest deductions not allowed on rental properties? And does it matter if the tax filer owns a separate primary residence or not?
Thanks