Interest question for property if paid by 3rd party

[BBQPorkBun]

Hello

If the property is an investment property, you can claim interest as your expenses. But what if I use my parents, line of credit for the downpayment, am I able to claim that interest?

Thanks

[gedwards]

You are supposed to claim only expenses that you have paid. It is not a great "audit trail" if the payments come directly out of your parents LOC because according to the paper trail your parents have paid the interest and not you.

It is "cleaner" to have your parents send the money from their line of credit to your account (as a gift or other wise). Then you can actually pay for the interest yourself out of your account. Now you can demonstrate a direct link from you account to the payment of the interest.

[gedwards]

I think I read your question a bit to quickly!!! I was looking at it more as if your parents were paying for the interest/mortgage on an ongoing basis.

If you own an investment property then you can definitely claim all of the mortgage interest. The source of your downpayment is not important.

[BBQPorkBun]

I think I read your question a bit to quickly!!! I was looking at it more as if your parents were paying for the interest/mortgage on an ongoing basis.

If you own an investment property then you can definitely claim all of the mortgage interest. The source of your downpayment is not important.

but whether i can claim int on that downpayment is.

no, id be paying my parents LOC