Posted on: 26th Mar, 2007 11:12 am
is mortgage interest deduction possible if i rent out part of my home, will be considered as used by me for residential living & will i be able to claim mortgage interest deduction on that home.
Yes that is possible, if part of home is rented out, that part can be treated as being used by you for residential living. But for that one condition has to be met, that is, use of rented part by tenant mainly for residential living.
"is mortgage interest deduction possible if i rent out part of my home, will be considered as used by me for residential living & will i be able to claim mortgage interest deduction on that home.
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Adding to condition lim mentioned about use of rented part by tenant for residential living certain other conditions are also to be met. Only then the rented part can be treated as being used by owner for residential living. Those conditions are:
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Adding to condition lim mentioned about use of rented part by tenant for residential living certain other conditions are also to be met. Only then the rented part can be treated as being used by owner for residential living. Those conditions are:
- The rented part is not a self-contained residential unit & does not have separate cooking, sleeping and toilet facilities.
- Same or different parts of the home are not rented to more than 2 tenants at any time during the year. Let me tell you one more thing, two persons are treated as 1 tenant if they share the same sleeping quarters.