Find Out More Ways to Save Money on Taxes by clicking on Kevin Bell’s website:
In order to deduct your mortgage interest from your taxes, you must satisfy two requirements:
- You must purchase an investment with the money that you borrow. This could be an investment property, a new business, stocks, bonds, etc.
- You must be able to show that your investment is generating income.This could be rent from a property, business revenue, or interest from investments.
If you have existing funds that you want to invest, it can be better to use these funds to pay off your current mortgage. Then you can re-borrow what you planned to invest and qualify for an investment loan, making your interest payments tax-deductible.