Joint Second Home

[Corduroy Frog]

Taxpayer pays a mortgage on his personal residence, $6500 interest on 1098.

He and his sister are 50-50 owners in another residence left to them by deceased father. House still carries mortgage which was loaned to father, but assumed by the two children. Interest on this mortgage is $8,000 and has been paid 50-50 by each.

Sister, however, lives in the home and has paid no rent other than her share of the mortgage. Sister has paid utilities.

Question: How much interest can this taxpayer deduct on Schedule A?

[dsi]

I'd say he could deduct the $6500 on his primary residence, and $4000 of the interest on his "second" home.

[OldJack]

I agree with David. $6,500+4000=$10,500.

[Corduroy Frog]

Thanks

Thanks to all. Common sense tells me he has a $10,500 deduction, but with the second home coming through the father's estate, and another family member living in it, I couldn't assume the obvious.

The Frog.