Marie Posted April 15, 2008 Report Posted April 15, 2008 Client took out a mortgage on land he owned and used the proceeds for his new home. Is that qualified home mortgage deductible on Sch A. Does interest tracing apply to home mortgage? Quote
jainen Posted April 15, 2008 Report Posted April 15, 2008 >>Does interest tracing apply to home mortgage?<< Yes. It is not qualified acquisition debt because it isn't secured by the property. Therefore, interest tracing rules apply. In this case, the interest is traced to a personal use, which of course is not deductible. Quote
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