I have a question regarding tax write-offs ofr the interest paid on your mortgage. Of course I will not hold anyone liable for the info they provide, I just wanted to some info if anyone knew for sure.
I have bought my first property (duplex) on land contract and have a short term loan from a private investment company. I have had it for 9 months. I have heard that you can deduct some of the interest that you pay on your mortgage from your taxes. I was wondering if the land contract will affect the tax deduction? Any info would be helpful. Thanks in advance.
No, a land contract is an installment sale as far as the IRS is concerned.
Mortgage interest you are paying on the contract is deductible on Schedule A if the property is your primary residence, or on Schedule E if the property is an investment rental.
Oh, that is great news. I guess I didn’t know what an installment sale was and assumed that it meant I could not claim the interest paid. Thanks for the help! Avi