My wife and I bought a townhouse unit next door using funds partly from a mortgage type loan. Can the interest be deducted?

[william12]

The unit we bought is not for rent but until our present unit sells the costs are tough.

[fuzzy · Accepted solution]

Sorry, but this is considered a personal expense and therefore is not deductible.  Only interest paid on a loan or mortgage that was used for income producing purposes can be claimed.