Home Mortgage Interest Deduction

[peggysioux]

Taxpayer refi'd primary home and used proceeds for down payment of second home. Is all interest that applies to aquisition debt of both homes deductible on refi? I recall a webinar a few years back that stated the home had to be used for collateral on loan in order for the interest to be deductible. If that is the case, the second home was not used as collateral so therefore not deductible, correct? I have had other tax preparers tell me that the interest on refi that pertains to second home would be deductible.

Peggy Sioux

[New York Enrolled Agent]

Taxpayer refi'd primary home and used proceeds for down payment of second home. Is all interest that applies to aquisition debt of both homes deductible on refi? I recall a webinar a few years back that stated the home had to be used for collateral on loan in order for the interest to be deductible. If that is the case, the second home was not used as collateral so therefore not deductible, correct? I have had other tax preparers tell me that the interest on refi that pertains to second home would be deductible.

Peggy Sioux

You didn't like the answer from Kyle you got on the Drake Board?

See if §163(h)(3)(B)(i)(II) confirms "secured by such residence" [singular]

[peggysioux]

You didn't like the answer from Kyle you got on the Drake Board?

See if §163(h)(3)(B)(i)(II) confirms "secured by such residence" [singular]

Just trying to receive additional input due to other tax preparers seem to think the interest would be deductible even though I referenced the example by Kyle. I was very happy that Kyle shared the example, but wanted to make sure there was nothing I was missing being there seems to be a number of tax preparers that think otherwise.

Peggy Sioux