Technical topics regarding tax preparation.
1-Jun-2023 9:40pm
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Hi all,
If you take a home equity loan on your personal home and use those funds to get a new roof on your commercial rental building, is the mortgage interest a deduction on schedule E?
2-Jun-2023 10:26am
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Tracing rules would apply here. It sounds like the answer would be yes.
2-Jun-2023 10:46am
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+1
I think the tax preparation community in general have all agreed to "yes" on this one.
2-Jun-2023 3:48pm
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Is an (o)(5) election needed?
On the one hand, that's used when you want to treat what would otherwise be deductible residence interest as interest traced to a business or investment use. But OP's interest would not have been deductible residence interest because it's in the 2018-2025 provision.
I read the reasoning in CCA 201201017 as supporting no need for the election.
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