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Mortgage Interest/tax deduction (# of home limitation)?

ibkid i asked:


I have 4 houses in total. Is there a limit in the number of house I can claim and deduct mortgage interests/property tax? I previously understood that I am only allow to deduct 2 property (my primary and 1 secondary home).

Gerald

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This entry was posted on Tuesday, May 26th, 2009 at 2:36 pm and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

4 Responses to “Mortgage Interest/tax deduction (# of home limitation)?”

  1. Judy Says:
    May 27th, 2009 at 6:07 am

    Thomas

    You can only deduct interest and property taxes for your main home and second home - just 2, not all 4, on schedule A. If some of the homes are rental property, then you could deduct expenses for the rental properties on schedule E

  2. dewkisses02 Says:
    May 27th, 2009 at 6:15 pm

    Jacqueline

    You should look at Publication 936 by the IRS. Here’s what it says about mortgage interest.

    For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

    The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.

  3. hermione98765 Says:
    May 28th, 2009 at 4:57 pm

    Florence

    Yes, you can only deduct personal mortgage interest and property tax for two houses, your main house and your second house.

    Are you renting out the other two houses? If so, those are not personal houses, those are investment properties. You would report the rental income (and property tax / mortgage interest deductions ) on Schedule E.

    For more info, see the source listed below

  4. mike c Says:
    May 31st, 2009 at 5:25 pm

    Warren

    I live in california and have a couple rentals I was able to deduct call my guy he did for me Michael Deery 858.442.2686 or 858.200.9602

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