Have Tax Questions? Ask a Tax Expert for Answers ASAP
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