Complicated rules allow housing costs exceeding a formula to be excluded from income if reimbursed by an employer, or deducted if not.

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You can fund an HSA account even if you contribute to a 401(k) or other retirement plan and even if your income is too high to fund a deductible IRA. Unlike some retirement plans for small businesses and the self-employed, an HSA can be funded (and deducted from other income) even if you do not show a profit from your business.

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If the increase comes from borrowing against the properties for other purposes it should not have been deducted against the properties.

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