Buying a second home w/ 2 other couples, Who gets the tax breaks?

Question

We are going to purchase a lake home probably with two other couples. I know multiple people go on the mortgage, but how does it work come tax time? Do all three couples get the tax deduction for the interest and property tax (split three ways). Or is it just the first person (highest income) listed on the mortgage get the tax break?

Answer 1

Assuming that all 6 names are on everything -- mortgage, deed, etc., you can split the deductions any way you please. Assuming that you're each paying an equal share then a 1/3 share per joint return would be proper.

In most cases only one name will be on the Form 1098 from the lender. That person will have to attach a statement to their return identifying the other borrowers by name and SSN. The other borrowers will need similar statements on their returns identifying the one who received the 1098, again by name and SSN.

Answer 2

If you are on the mortgage you would get to deduct as much interest as you paid...

So it if everyone paid exactly the same, then Yes it would get split 3 ways.

Answer 3

I may be wrong but I was under the impression that second or vacation homes do not get any tax deductions. I* was told that is only for your primary residence. you should definitely find out