Hi all
Rental property income
Is mortgage repayment an allowable expense??? and does it matter if this is a residential or buy to let?
Replies (3)
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No
Mortgage repayments is effectively a transfer of money from one account to another, it has no impact on overall finances. So no it is not tax deductible. Mortgage interest charged by the lender on the other hand, is a charge to the rental business and therefore is tax deductible.
Interest only mortgage
If you have an interest only mortgage the so-called "repayments" will include no capital element and so be interest only and so be deductible as an interest cost against the rental income.