Husband and wife 3 Homes

[equinecpa]

Clients got married in 2009, each had their own principal residence coming into the marriage. Now they purchased a ranch with home in April 2010 -can they claim all 3 homes under principal residence ie ranch & his home being his 2, and ranch and her home being her 2 or are they limited to ranch home and one house after 04/10?

They live in the ranch house and the other two properties are vacant and for sale.

Per taxbook a taxpayers 3rd home is a personal loan, but in this case each taxpayer only has an ownership interest in two properties, and they are not living in a community property state.

Carolyn

[S T]

Property Taxes

Property taxes seems would not be an issue,

I am "reading between the lines" and think you are asking about Mortgage Interest Deduction??

Jan 2010 thru March 2010, would one property be personal residence, one be a 2nd home and then one be Investment.

Ranch Home would be personal residence - if loan qualifies 4/2010

After 4/2010 , If other two properties are vacant, would they qualify for Investment Interest Deduction (4952) or one qualify for 2nd home and one for Investment Interest??

Seems a little complicated - after 4/2010 - ranch home (pers res) , and one other as 2nd home - 3rd one Investment ???

Just thinking out loud!

Not sure - and I hope you don't have to file by tonight 10/17/11.

Sandy

[taxea]

really? How many homes can they live in at one time. I believe the IRS would say the home they are residing in at the end of the year is the primary. Depending on whether this is a commumity property state or what names the other homes are currently in, only one would qualify as a second home and the remainer are investments.

[Kram BergGold]

Limited

I see this as they have 3 houses. They can only deduct mortgage interest on two. They get to pick which two they want to choose regardless of how they are used. To me, the two unoccupied houses were primary residences and are up for sale. This means they retain that character. They are not investmetnt property.

[newbie]

I agree with Kram GoldBerg.