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on your income taxes. I bought a house in Arizona and the loan came off my primary residence in California, so the tax guy is itemizing on a schedule A, but would I have done better if I took the loan directly off the Arizona house and filed with a Schedule E. Does it benefit me one way or the other? He does write off my maintenance etc on the rental property.

4 Thoughts on Does it make any difference if your property tax is put on Schedule A or E?
  1. Reply
    [email protected]
    July 30, 2011 at 5:54 am

    ASKED and ANSWERED–twice yesterday.

    The loan is on the home, so it goes on Sched A, period. Look at your 1099! Do you think by asking a third time you’ll get the answer you want? Well, feel free to listen to the one person who says what you want, when everyone else has been telling you the IRS requirements.

  2. Reply
    July 30, 2011 at 6:52 am

    You can write off mortgage interest on Schedule E when it is interest which is secured by the business property. You borrowed against your principal residence, so the loan is secured by your principal residence.

    This loan is home equity debt and the interest on up to $ 100,000 can be deducted as mortgage interest on Schedule A.

    If your loan is for more than $ 100,000, you would be better off if you had the loan against the rental property. But if the loan is for less than $ 100,000, and you itemize using Schedule A, there should be no difference in your taxable income whether the interest appears on Schedule A or Schedule E.

  3. Reply
    James M
    July 30, 2011 at 7:35 am

    Yes, indeed it does. Simple arithmetic will tell you so.

    One is a direct write off expense. The other is simply a tax deduction its value to you is based on your tax rate.

  4. Reply
    Doctor Deth
    July 30, 2011 at 7:46 am

    no difference

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