Can Mortgage interest deducted on Investmetn Property when it is sold

[skyworks]

Hi,

Can I deduct mortgage intereste paid for an investment (apartment, Purchase 2019, sold in 2021)?

The apartmetn was not rented and it was not reported as rental on Sch E.

It was not used as principal home or VAC home.

Thanks!

[George4Tacks]

Look into Form 4952. Did you file that in 2019 and 2020? 

Did you deduct the property taxes in prior years? 

"t was not reported as rental on Sch E" leads me to ask "Was it rented?"

[skyworks]

No any expense deducted as it was never reported on tax return

[Terry53029 · Accepted solution]

To actually claim the deduction for investment interest expenses, you must itemize your deductions. Investment interest goes on Schedule A, under "Interest You Paid." You may also have to file Form 4952, which provides details about your deduction. You don't have to file this form if you meet three conditions: interest is the only investment expense you're deducting; you're not carrying forward any disallowed interest from the previous year, and your investment interest doesn't exceed your investment income from interest and ordinary dividends. If the mortgage interest is enough you can amend previous years to claim it, and you can claim in year you sell, if you itemize

[skyworks]

thanks. I will look into this.