I know IRS allows you to have two qualified homes and deduct interest on them, even though you don't live in the second home, as long as you don't rent it out, or you don't put it up for sale during the year.
How about if I dont' own a home (rent in one state) and buy a house I intent to live in, down the road, in another state. I don't rent or sell that house.
Is the interest tax deductible? I cant' finf this case in IRS pub 936
thanks!!!
2007-07-19 13:06:23 · 3 answers · asked by UA_Tucson_AZ 1 in Business & Finance ➔ Taxes ➔ United States
What are you doing with it in the meantime? If you are renting it out, then it's rental property, and expenses would be taken against the rent. If you aren't renting it out and just visit there once in awhile, then yes, you can deduct the interest as an itemized deduction.
2007-07-19 15:07:59 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Not sure if it differs from state to state, but my fiance owned a home in Michigan and then moved to Maryland. He was able to deduct interest on his taxes until he sold the home. I'd call an accountant or a tax attorney to be sure what the laws are for your state.
2007-07-19 20:10:18 · answer #2 · answered by jll1881 3 · 0⤊ 0⤋
Check page a-3 of 1040 instructions (which covers home mortgage interest) which basically states that " A home mortgage is any loan that is secured by your main home or second home. It includes first and second mortgages, home equity loans, and refinanced mortgages."
So if you consider this house as your main or second home even if you don't live there I would say you should be able to deduct the interest
2007-07-19 20:19:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋