I already have a first morgage and that interest was deducted, but can I deduct the interest from a second mortgage also?
2007-04-12 02:56:19 · 4 answers · asked by Brett C 4 in Business & Finance ➔ Taxes ➔ United States
You may deduct interest on mortgages (for acquisitions) of up to $1,000,000 and home equity loans of up to $100,000. Therefore, let's say you have a first home with a mortgage of $500,000 and a vacation home with a mortgage of $150,000 you may deduct the entire interest.
However, if you have a mortgage of $500,000 on your home, then you take out a home equity loan of $200,000 you may only deduct the interest for the mortgage, and for $100,000 of the home equity loan, unless you use the other $100,000 of the home equity loan for remodeling the home.
2007-04-12 04:07:57 · answer #1 · answered by Bettina C 2 · 0⤊ 0⤋
The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.
2007-04-12 03:19:34 · answer #2 · answered by dewkisses02 4 · 0⤊ 0⤋
Yes! All interest on a house, including points paid to get a loan are deductible.
2007-04-12 03:03:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, if you're itemizing, just add the two together.
2007-04-12 05:54:06 · answer #4 · answered by Judy 7 · 0⤊ 0⤋