primary residence - intrest tax break


B

browndesi

i am a resident of NJ and presently want invest in real
estate. I have been struggling to get something decent for
my budget and finding it hard. considering i am single, i
was investigating the option of buying a property in
southern state like georgia or north carolina due to family
ties in those areas. I would be mostly not renting the
property.

I wanted to know if I can still avail of the primary
residence tax break on the interests that i incur on paying
the mortgage for this property.

If there is a workaround or any rules guiding this, i would
appreciate any guidance or help or direction on this matter.
I feel like i am loosing out on the tax break and wanted to
avail of it at the earliest this year.

thanks once again
Mumbai
 
Ad

Advertisements

G

Gary Goodman

browndesi said:
i am a resident of NJ and presently want invest in real
estate. I have been struggling to get something decent for
my budget and finding it hard. considering i am single, i
was investigating the option of buying a property in
southern state like georgia or north carolina due to family
ties in those areas. I would be mostly not renting the
property.

I wanted to know if I can still avail of the primary
residence tax break on the interests that i incur on paying
the mortgage for this property.

If there is a workaround or any rules guiding this, i would
appreciate any guidance or help or direction on this matter.
I feel like i am loosing out on the tax break and wanted to
avail of it at the earliest this year.
Interest is deductible if paid for the mortgage on a first
or second home. Note, the homes need not be the same each
year. There is also a limit on the total debt. $1,000,000
plus $100,000 in home equity. If your mortgages total more
than $1.1 M, then you have to prorate the deductible amount.

Another problem you might find is that many lenders will
charge a higher rate and/or require a larger down payment on
a property that is not your primary residence.

Overall, more information is required from you to answer
your question completely. You should check with your own tax
advisor.

Gary
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top