use your common sense. Don't play dumb

If you bought the second house BEFORE the loan, how can you argue that "the loan proceeds are used for ... business ... or investment activities"? 

 

https://www.irs.gov/publications/p535

Allocation of Interest

The rules for deducting interest vary, depending on whether the loan proceeds are used for business, personal, or investment activities. If you use the proceeds of a loan for more than one type of expense, you must allocate the interest based on the use of the loan's proceeds.

Allocate your interest expense to the following categories.

• Nonpassive trade or business activity interest.

• Passive trade or business activity interest.

• Investment interest.

• Portfolio interest.

• Personal interest.

In general, you allocate interest on a loan the same way you allocate the loan proceeds. You allocate loan proceeds by tracing disbursements to specific uses.

所有跟帖： 

• Right.if the 2nd,3rd are bought one year after cash out, would -start2020- ♀ (0 bytes) () 01/20/2020 postreply 08:04:03

• 这个当然要具体分析，时间不是因素 -柠檬椰子汁- ♂ (645 bytes) () 01/20/2020 postreply 08:37:25

• 谢谢。 如果是现金买出租房，一年后cash out， 是不是可以利息都算到第一个房上。因为第一个房是用交过税的现金买的。 -start2020- ♀ (0 bytes) () 01/20/2020 postreply 13:29:01

• 当然利息是可以算在你refin出来的房子上的。其实 -Progressive- ♀ (115 bytes) () 01/20/2020 postreply 21:31:38