AnnieR Posted December 8, 2007 Report Share Posted December 8, 2007 Clients have purchased their new home by land contract. He asked me a question that I think I know the answer to but I thought I'd get your opinions, cites, etc. We know he can deduct the interest he pays on the land contract, the owner of the property has to claim that as income...now...the owner still has a mortgage on that property, the payments on which are exactly the same amount my client is paying each month. Can the holder of the land contract then deduct that same interest on his Sch A? Thanks in advance, AnnieR Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 8, 2007 Report Share Posted December 8, 2007 Yes, the seller has what is often called a 'wrap-around'. He claims the interest he earns on Sch B, and deducts the interest he pays on Sch A. Quote Link to comment Share on other sites More sharing options...
AnnieR Posted December 9, 2007 Author Report Share Posted December 9, 2007 Thanks, KC. I thought that was it, but just wanted to be sure. AnnieR Quote Link to comment Share on other sites More sharing options...
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