Client has added a 3rd home. They have a mortgage on their primary home, no mortgage on the second home, and a mortgage on the 3rd home which was rented out for 3 months. The taxpayer did stay in the 3rd(rental) home for a few weeks last year so it may qualify for interest deduction as a 2nd home since it was over 14 days and greater than 10% of the rental days.
Since they have 3 homes, would this rental still qualify as a 2nd home for interest deduction purposes since the taxpayer used it for vacation purposes?
Not sure if the "2nd home" rule is literal meaning that 3rd homes don't count or if they just mean "2nd home" as in "2nd mortgage."
Since they have 3 homes, would this rental still qualify as a 2nd home for interest deduction purposes since the taxpayer used it for vacation purposes?
Not sure if the "2nd home" rule is literal meaning that 3rd homes don't count or if they just mean "2nd home" as in "2nd mortgage."
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