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Solved

Allocation of repayment on mortgage used to purchase multiple properties

Forum|Forum|3 years ago
April 11, 2023
1 reply
0 views

I used some of the money from a refinance of the mortgage on rental property A to buy rental property B. So based on the tracing rules I need to allocate the mortgage interest between rental property A and rental property B. I have been allocating the repayment to rental property B since it is the smaller loan so it can be paid off sooner which will simplify things. Would this procedure be acceptable to the IRS? Thank you.

TurboTax Business Windows

Best answer by KrisD15

Yes, as long as you are allocating the interest, the repayment needn't be done in any required order.

Be sure to keep records with your tax file.

Yes, as long as you are allocating the interest, the repayment needn't be done in any required order.

Be sure to keep records with your tax file.

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