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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com.

Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill College

You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Tax benefits of mortgage on investment property or principal home

Tax Law (Questions About Taxes) - Tax benefits of mortgage on investment property or principal home

Expert: John Stancil, CPA - 11/1/2009

Question
We would like to refinance and combine our principal home mortgage and our investment property mortgage into one.

The investment mortgage is typically 1% higher and our goal is to reduce the payment which would be covered mostly by the monthly rental income.

Is it better to have the mortgage on our principal property where we can offset the mortgage interest on our taxes or would it be better to have the mortgage on our investment property and offset this on our taxes against the income.

Answer
Julie,

Thanks for your question.

Regardless of how you treat the mortgage, you must allocate the interest between your residence and the investment property.

If the mortgage does not have a security lien on your residence, the interest relating to that property is not deductible.

Hope this helps.

John Stancil, CPA

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