I have a first mortgage that is my home and a second that is a timeshare that I purchased. I recently purchased a boat and am wondering if I can write that off as well. Someone told me that I can only write off two mortgages. My question is whether or not I can write off the boat payments as well or is it just best that I pay it off and not pay the interest. Thanks for any help.
2007-09-30 07:28:42 · 3 answers · asked by Dragica 2 in Business & Finance ➔ Taxes ➔ United States
Interest payments on your first two homes are deductible.
If the boat has sleeping, eating and bathroom facilities, it can be considered a second home. If this is the case and the interest is higher than the timeshare, you can deduct the interest on the home and the boat, but not all three.
2007-09-30 09:14:55 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
You can deduct mortgage interest (NOT the whole payments) and real estate taxes on a first and second home. The boat is on your nickel.
2007-09-30 21:38:11 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
There is no limit on tax deductions for real estate taxes. For mortgages, you are limited to primary and second home. A boat can sometimes qualify as a second home (http://seattlepi.nwsource.com/local/199197_boatshome11.html ).
2007-09-30 14:38:57 · answer #3 · answered by Anonymous · 1⤊ 0⤋