The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Tax deduction on 3 "homes"||Date: 2/13/2002 4:11 PM|
|Author: irasmilo||Number: 58925 of 124467|
I have a friend who just moved into a new house last october, still hasn't sold their old house, and has a timeshare. They received morgage interest forms from all 3. I thought you could only have 2 deductions, unless you have rentals. Can he deduct all 3?
as long as old house was principal residence i say he can deduct all three in the year of the move.
If he cannot sell old house in the following year -- could have a problem since it would not qualify as his principal residence.
You can deduct real estate taxes on all three, but you are only allowed to deduct mortgage interest on two personal properties, your principal residence and a second home. Since their principal residence changed in October, they will have to decide whether the timeshare or the old home should be used for the second home mortgage interest deduction for the last 2+ months of the year. The other one cannot be deducted.
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