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May 10, 2024

Used 401k loan as a down payment on a rental property. Can I claim it on my taxes?

  • May 10, 2024
  • 1 reply
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I took out a loan on my 401k to make a down payment on a rental property. I’m using part of the rental income to pay back the loan. Can I claim those payments or the interest from those payments as a deduction? 

    1 reply

    DoninGA
    Employee
    May 10, 2024

    The 401(k) loan repayments are not deductible on your tax return.  The interest paid on the loan is not a rental expense since the loan is not secured by the rental property.

    May 10, 2024

    Thank you!