Comments on: Mortgage on primary home to buy second home, can i deduct taxes?

By: Landlord

Landlord — Mon, 02 Feb 2009 12:26:01 +0000

He can deduct the mortgage because it will be on his primary residence with the vacation home being paid for in cash from the mortgage.

By: DJ B

DJ B — Fri, 30 Jan 2009 20:46:17 +0000

What I suggest is to look to the tax code regarding a second home. But I believe the answer is yes.

By: patrick

patrick — Tue, 27 Jan 2009 14:30:15 +0000

I assume you mean the interest, not the taxes.
In any case, the taxes are definitely deductible. The mortgage is deductible up the the amount she originally paid for her primary residence, plus any long term capital improvements she has made.
For example if her first home was purchased in 1992 for $200,000, and she made an addition of a 4th bedroom for $40,000, she can deduct a martgaeg interest payment of $240,000 on a second mortgage, used to pay for a vacation home.

By: WeLoan.Us

WeLoan.Us — Mon, 26 Jan 2009 23:08:28 +0000

yes…..He can deduct the closing costs and the interest on both properties..

By: Cory C

Cory C — Sat, 24 Jan 2009 06:39:18 +0000

your best answer would be to contact either the IRS directly or a tax preparer in your area. Tax issues are not something you want to get an unauthorized opinion on.