Client has a primary residence (mortgage & taxes), a time-share condo (taxes) and a lot (mortgage and taxes) on which she is preparing to build a new primary residence. She will sell the existing primary residence when the new one is completed. As I understand, the rule for deductions is limited to two properties. Can she select which one to consider as personal debt and use the other two as deductions? Thanks for any comments.
Property Deductions
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UnregisteredTags: None
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taxes not limited to 2 properties
I don't see anything restricting property taxes to 2 properties, so I would deduct all the property taxes. Mortgage interest though IS restricted to "main home and second home" (Pub 17, pg 144, middle column).
So, looks like you're good to go -- deduct all.
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Unregistered
interest
She could deduct the taxes on her home,time share and lot. I would deduct the interest on the lot as investment interest or maybe personal interest- - until you build the home on the lot, then deduct as mortgage interest.Comment
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