I own a house, and live with family members. I want to rent an apt closer to work. Will mortgage interest still be tax deductible?
March 31, 2011 3:24 PM   Subscribe

I own a house, and live with family members. I want to rent an apt closer to work. Will mortgage interest still be tax deductible?

My family will still live there, and it will not be a rental property.

I spoke to an attorney over the phone and he said that if you own property, the mortgage interest is always tax deductible. However, when I did some googling, there seemed to be some stipulations about that concerning 'primary residence' status. Can anyone here pitch in about that?

I know that the IRS' definition of 'primary residence' is fluid, and if I'm going to live in an apartment, that will most likely be my primary residence. I'd still keep my driver's license and voting address at my permanent home.

I'm planning to meet with a tax professional soon just to be sure, but I just want to make sure I'm not missing something totally obvious.
posted by elif to Law & Government (4 answers total)
 
Response by poster: forgot to post- I'm unmarried.
posted by elif at 3:25 PM on March 31, 2011


"I'd still keep my driver's license and voting address at my permanent home."

This sounds to me like what a primary residence is. People rent apartments to go to school, when traveling, as a convenience near work, etc. The amount of time you spend there does not make it your primary residence. (IANAL but I had this discussion with a professor of tax law several years back. He said that one's residence is that place where, when one is away, one always intends to return.)
posted by Anitanola at 3:46 PM on March 31, 2011 [1 favorite]


Mortgage interest is deductible, along with ALL other maintenance and upkeep expenses of a rental property. And depreciation. Of course, you have to claim the rent as income, but tax laws are crazily skewed in favor of business investors. If you know a CPA, or can get a recommendation for one, one appointment will give you a huge return on the fee, IF they charge you. Many CPA's will loan 30 minutes of their advice for free. It is worth your time, trust me.
posted by raisingsand at 3:59 PM on March 31, 2011


You can deduct the interest from your first and second homes. See IRS pub. 936.
posted by itsamonkeytree at 4:51 PM on March 31, 2011


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