Mortgage Interest on Three Homes

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  • Jesse
    Senior Member
    • Aug 2005
    • 2064

    #1

    Mortgage Interest on Three Homes

    Client had a primary residence and a vacation home. Job transfer to new location so purchased a third home.

    Sold one of the other homes on land contact. Now taxpayer has three mortgage interest payments. Taxpayer is able to take two of the homes on schedule A.

    For the home that was sold on land contract the interest on the land contract must be claimed as income. Can the mortgage interest that is paid on this home also be deducted to offset income? Interest income = mortg interest paid.
    http://www.viagrabelgiquefr.com/
  • Rae
    Junior Member
    • Feb 2006
    • 27

    #2
    Yes, on Form 4952 - Investment Interest Expense Deduction.

    Comment

    • Nashville
      Senior Member
      • Nov 2007
      • 1129

      #3
      Careful

      Rae is right, this interest would qualify as "investment" interest on Form 4952.

      But remember, if you deduct the interest, you remove the home from favorable LTCG treatment.

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