What are the calculations to show the tax benefit of mortage interest deductions for a rental-property buyer?

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One Response to What are the calculations to show the tax benefit of mortage interest deductions for a rental-property buyer?

  1. bostonianinmo says:

    Troy

    The mortgage interest and property tax reduces your taxable income. The portion on the Schedule A might help if your itemized deductions are greater than your standard deduction. Apportion the real estate taxes the same way. The portion on Schedule E will offset the rental income and therefore reduce your taxable income.

    The mortgage insurance isn’t deductible so the portion attributable to your personal residence doesn’t go on Schedule A. The portion attributable to the rental units should be deductible on Schedule E.

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