Suppose my monthly mortgage + other costs (hoa+prop tax) comes to $4000 a month. 6 months down the line, I need to relocate and give this house on rent for $3,000. I don’t buy in the new city and rent. Can I still claim my mortgage interest + prop tax on my taxes?
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It becomes a business expense, which is also a legitimate mortgage deduction. You’ll also be able to deduct hoa, for the same reason. But now you’ll have to report $3,000 of rent you’re collecting as income, which will offset the benefit of deducting mortgage interest. There are also finer points, such as being able to “depreciate” your rental house (a mechanism that reduces your cost basis in the property and allows you to claim the amount reduced as a mortgage deduction), and a cap on the amount of losses you are allowed to write off in a given year. This would be a good thing to discuss with a CPA.
