Re: To those who rent out their home....
I think Russ's point about distinct and separate is a good one. If you have a separate mortgage on the rental property it will be cleaner and easier to demonstrate your expenses are tied to the property. A mortgage on another residence used to purchase the rental could get messy - just proving that the proceeds were used to purchase the property - are there other amounts in the equity line used for other purposes? Can you prove it? Certainly, in retrospect for me at least, there were none of these issues. The expenses I was deducting were directly related to the property.
|