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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I own 3 properties; 2 houses and 1 townhouse. I owe less

Customer Question

I own 3 properties; 2 houses and 1 townhouse. I owe less than 1 million dollar among those 3 properties. I have 2 daughters. Each of them are living in one of my property and they don't pay rent. Can I claimed the interests and taxes of the 3 properties in the Schedule A of my personal income tax?
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

The mortgage interest deduction is allowed for your primary residence and ONE secondary residence.
If you have more than one secondary residences - you may claim mortgage interest deduction ONLY on one.

Customer: replied 9 months ago.
Thank you
Expert:  Lev replied 9 months ago.

Please be aware that if you have two secondary homes as in your situation - you may choose any of these for mortgage interest deduction. Whatever is more beneficial for you.

Regarding real estate taxes - you may deduct those on ANY number of properties you own.

See page 4

https://www.irs.gov/pub/irs-pdf/p936.pdf

Qualified Home
For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.
The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.

Main home. You can have only one main home at any one time. This is the home where you ordinarily live most of the time.

Second home. A second home is a home that you choose to treat as your second home.

Second home not rented out. If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You do not have to use the home during the year.

Let me know if you need any help with reporting.

Customer: replied 9 months ago.
In other words, the real estate taxes of the 3 properties can be presented in Schedule A?
Expert:  Lev replied 9 months ago.

Correct - there is no limit for real estate tax deduction.
In this situation only mortgage interest is limited.

Customer: replied 9 months ago.
Thank you, again
Expert:  Lev replied 9 months ago.

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I am here to help you with all tax related issues.

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