2007-07-31 10:26:19 · 2 answers · asked by Harland C 1 in Business & Finance ➔ Taxes ➔ United States
As a previous person mentioned, you can deduct the interest on a second home (house, houseboat, camper- anything that you can live in) with a $1,000,000 limit on the principal owed. e.g. Assuming interest rates are equal, if the mortgage on your first home is $800,000, you can only deduct the amount of interest relating to $200,000 of principal on the 2nd mortgage. If the rates are different, obviously max out the higher rate to maximize the deduction.
2007-07-31 12:55:51 · answer #1 · answered by Jeff 2 · 0⤊ 0⤋
You can deduct mortgage interest and property taxes on your primary residence and a second residence.
If you have two mortgages on either or both of them you can deduct all of the mortgage interest that you pay.
If any mortgage is a home equity loan that you use for any purpose other than repairs or improvements to the home, the limit is the interest on the first $100,000 of the home equity loan.
2007-07-31 11:05:35 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋