Question

Mortgage Interest Deduction for Two Homes

Forum|Forum|4 years ago
March 5, 2022
2 replies
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Hello. I have two homes, my primary residence and a second home that is not a rental. Can I deduct the mortgage interest from both mortgages? My primary residence mortgage balance is $735K, and the second home mortgage balance is $631K. Thank you

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R

RaifH

Yes, you can include the mortgage interest and property taxes from both of your homes. However, the deduction for mortgage interest starts to be limited at either $750,000 or $1 million depending on how long you have had the loan. TurboTax will calculate your mortgage interest deduction after you enter both of the 1098s. To determine your average balance on both loans, TurboTax will also ask for the outstanding balance as of January 1, 2022.

Also, you may not deduct more than $10,000 in total taxes paid for property taxes and income or sales tax.

J

jdlr1025Author

And is the $750K cap for the combined total of both mortgages or for each mortgage? In my case, both mortgages combined total over $1.3 million, but separately they are both under $750K.

PTH_4653

Did you get an answer to 750k cap applying to combined mortgage balances or is the $750K limit on each house mortgage separately, so theoretically up to $1.5M total mortgage interest deductible if each house had a $750K mortgage. ???

M

Mike9241

also if either or both mortgages are refi's the amount deductible is even more limited. usually to the principal balance when refinanced unless the cash out was used for improvements to the property but still limited to a cap of $750K or $1000k

J

jdlr1025Author

Thank you. And is the $750K cap for the combined total of both mortgages or for each mortgage? In my case, both mortgages combined total over $1.3 million, but separately they are both under $750K.