More than 700,000 home-based business owners might be eligible to deduct a portion of their mortgage interest on their principal residence as an expense as long as you can prove and maintain a direct link between the mortgage you incurred and earning income. You would base the mortgage interest deduction on the square footage of your home office divided by the total square footage of the house.
It is also true that if you incur a mortgage to purchase a rental property, the interest you pay on the mortgage is tax deductible as that rental property is used to earn income.
Generally speaking, mortgage interest is not tax deductible on your principal residence. However if you can prove a direct link between the mortgage and using that part of the house to earn income, then you will be eligible to make that interest deduction.
Consult your accountant or a tax specialist to seek advice.
Please go to Article: How your Mortgage Can Lower Your Tax Bill
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