Interest

[TAX]

Client has four properties homes.

One: Principle Res
Second: Out of state where his son lives (under client's name)
Third one: Out of state (not rented)
Fourth: TimeShare - two timeshares

He also has Home equity loan.

(1) I think he can deduct interest for two homes and property tax for all three homes?

(2) Can he deduct interst on home equity loan?

(3) Can he deduct interest and tax on each timeshare?

Thanks!

[erchess]

My Two Cents

I don't know if he can deduct the interest on the home equity loan. In order to be able to deduct the interest it would have to be secured by his first or second home and the principal amount of all his mortgage and home equity debt would have to be no more than one million dollars.

He can deduct on Sch A of his 1040 all of the property taxes he pays.

I do not believe that he can deduct his interest on the timeshares unless he can and actually does choose to treat ONE of the timeshares as his second home. I do not know whether he can do that and I seriously doubt that he would benefit from doing so.