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sandy
Guest
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 Posted: Wed Jul 27, 2005 1:04 am Post subject: vacation-home mortagage |
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| is interest paid on vacation home mortagage tax-deductible? |
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 Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 814
Location: OHIO
195.97 Dollars($)
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| Posted: Wed Jul 27, 2005 1:44 am Post subject: RE: |
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Hi Sandy
Welcome to MortgageFit forum.
Interest on vacation home mortgage is tax-deductible but you will have to use the property for personal purposes during the year.
There are second properties which are rented throughout the year without any use by its owner. But if such properties are partly rental and partly personal, then the Internal Revenue Service allows tax relief . In such cases the tax break is offered if personal use exceeds 14 days or 10% of the time the second home was rented, whichever time length is greater.
We hope that you will be benefited from this information.
Please feel free to seek our advice whenever required.
Regards,
Jessica. |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 814
Location: OHIO
195.97 Dollars($)
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| Posted: Mon Aug 15, 2005 10:30 pm Post subject: RE: |
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Vacation home and tax-deductibility
Tax deduction in case of vacation home applies to mortgage interest and property taxes as well as points paid at closing. Under the current tax law, mortgage interest on a second home is deductible on the first $1 million ($500,000 if you are married and filing a separate return) in mortgage debt utilized in buying, constructing or improving a principal residence and a vacation home or when the mortgage amount exceeds the fair market value of the property.
But in case there are more than one vacation home, then you will have to consider as your second home the residence with the largest deductions from mortgage interest and real estate taxes. Property taxes are considered for deduction whatever is the number of vacation homes. But the mortgage interest is deductible only when you itemize the deductions. |
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