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URL:  http://boards.fool.com/not-sure-what-the-difference-is-between-a-29455865.aspx

Subject:  Re: Home equity loan used to buy second home? Date:  8/4/2011  1:58 AM
Author:  ptheland Number:  113842 of 121572

Not sure what the difference is between a vacation home and a second residence....it would be used on weekends and for longer periods during vacation times.

Any debt secured by your principal residence but used to purchase this second residence would be home equity debt rather than home acquisition debt.

The upshot is that you can deduct interest only on the first $100k of home equity debt, and that interest is not allowed for AMT purposes.

--Peter
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