primary residence, secondary residence


O

Old Car

I own 2 homes. I spend most of my time in one, and the other is used for
vacations. I just purchased the vacation home last year.

1. Is mortgage interest on the vacation home tax deductible?
2. Assuming #1 is true, if I married someone who also owned 2 homes (one
primary and one vacation home), would we be able to deduct mortgage interest
on all 4 homes?

Thanks.
 
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T

Thomas Healy

I own 2 homes. I spend most of my time in one, and the other is used for
vacations. I just purchased the vacation home last year.

1. Is mortgage interest on the vacation home tax deductible?
2. Assuming #1 is true, if I married someone who also owned 2 homes (one
primary and one vacation home), would we be able to deduct mortgage interest
on all 4 homes?
No. Only on your principal residence plus one other (your choice each year).
 
O

Old Car

Thomas Healy said:
No. Only on your principal residence plus one other (your choice each year).
This appears to be a "marriage penalty" that no one talks about.
 
P

Paul A Thomas

Old Car said:
I own 2 homes. I spend most of my time in one, and the other is used for
vacations. I just purchased the vacation home last year.

1. Is mortgage interest on the vacation home tax deductible?
Yes.



2. Assuming #1 is true, if I married someone who also owned 2 homes (one
primary and one vacation home), would we be able to deduct mortgage
interest
on all 4 homes?

The mortgage interest on your primary residence and ~one~ second home are
allowed. The other home mortgage interest for home # 3, 4, 5, 6,
7,.....isn't deductible.

Now, if those other homes were rental property, that's a whole other story.
 
O

Old Car

Paul A Thomas said:
The mortgage interest on your primary residence and ~one~ second home are
allowed. The other home mortgage interest for home # 3, 4, 5, 6,
7,.....isn't deductible.

Now, if those other homes were rental property, that's a whole other story.
If 2 single individuals can write off the mortgage interest on their primary
and secondary residences, but lose that ability when they get married, it
sounds like the "marriage penalty" is still alive and well.
 
P

Paul A Thomas

Old Car said:
If 2 single individuals can write off the mortgage interest on their
primary
and secondary residences, but lose that ability when they get married, it
sounds like the "marriage penalty" is still alive and well.


I believe the jury would decide that if you have the income to support four
mortgages, you can handle the tax as well.
 
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O

Old Car

Paul A Thomas said:
I believe the jury would decide that if you have the income to support four
mortgages, you can handle the tax as well.
Ummm... by the same "logic" you are using, single people who have the income
to support 2 mortgages should be able to handle the tax on both. Thanks for
your "useful" comment anyway.
 

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