I just purchased a second home. Can I deduct mortgage interest for both properties? Is there a dollar limit?

Not sure if mortgage interest deduction is allowable beyond a certain amount of mortgage debt (for tax filing status = single).





I do not plan on renting out either of the properties. One would be my primary residence (vacant), and I would be living in the 2nd property in another state (because I had to relocate for a job).I just purchased a second home. Can I deduct mortgage interest for both properties? Is there a dollar limit?
You can deduct home mortgage interest on up to two homes. Generally, the acquisition debt on which you can deduct interest is limited to $1 million ($500,000 if married filing separately).





In addition, you can deduct interest on a home equity loan, generally that limit is $100,000.





More details and special cases are in IRS Publication 936





http://www.irs.gov/publications/p936/ar0鈥?/a>I just purchased a second home. Can I deduct mortgage interest for both properties? Is there a dollar limit?
I believe that you can only deduct the mortgage interest on the residence considered to be your primary residence.
You can deduct the mortgage interest on up to 2 properties. There are limits, but I can't remember them now.
Consult IRS Pub 936 as to deductabilty. This can be ordered from the IRS website.