Hello forum members,
Would like your opinion about the following example please:
Investment Property A:
Loan 1: 227500
Loan 2: 55000 (split to purchase Property B)
Investment Property B: (Value 390000)
Loan 3: 221000
If I were to refinance the loan on Property B, and borrow an additional 55000 to pay off loan 2, would the interest on 55000 be deductible?
Is there any ruling that covers the above scenario?
Thank you
Would like your opinion about the following example please:
Investment Property A:
Loan 1: 227500
Loan 2: 55000 (split to purchase Property B)
Investment Property B: (Value 390000)
Loan 3: 221000
If I were to refinance the loan on Property B, and borrow an additional 55000 to pay off loan 2, would the interest on 55000 be deductible?
Is there any ruling that covers the above scenario?
Thank you