[quote=SK in CV][quote=plm]Interest in loans should be an expense too, right? So I should get a loan on my rental and use that to pay off my mortgage on my house. This way I can write off the interest as a business expense as I will probably be taking the standard deduction next year. Also avoid the net investment 3.8% tax if I get a big enough loan to make rental just barely making money.
Is this legal?[/quote]
If your rental doesn’t have a mortgage, and you borrow against it, and use the money to pay off the mortgage on your principle residence, the answer is no. It’s not deductible interest.[/quote]
Makes sense. I suppose if I get a mortgage and use that money to buy another rental then that is allowed. But then I would have to manage another rental.
