CassieNet News :: In the process of getting a mortgage

In the process of getting a mortgage :: RE: vacation-home mortagage

Author: jessica
Subject: RE:
Posted: Tue Aug 16, 2005 5:30 am (GMT 0)
Topic Replies: 2

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.

For the full story see:
http://www.mortgagefit.com/discuss/about698.html
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