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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am interested in buying a ranch with considerable land to

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I am interested in buying a ranch with considerable land to use as a second home. Is there any limitations on the interest or the amount of land that is financed with the home since the land will be 100 acres at least.

Hello JA Customer,

 

You can deduct mortgage interest that you pay on a second home, only to the extent that the mortgages from your primary residence and second home do not exceed $1 million. This would still be treated as a second home regardless of how much land was associated with the ranch.

 

If the total principal amount that you finance for your primary home and second home exceeds $1 million, you would have to calculate how much interest you paid on $1 million only, and that would be the extent of the interest you could claim as a deduction.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you JA Customer

 

 

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