If neither home is used as rental property, you can take the mortgage interest paid and real estate taxes for both homes in the calculation of itemized deductions in your federal tax return. Enter the form 1098s in the mortgage interest. For real estate taxes, enter one as other property.
If one of the properties is a rental property, you will complete the Rental income section of Turbo Tax. If that property is located in your non-resident state, you may need to complete a state tax return for that state as well. If the property is not used as rental property, you would not need to complete the second state tax return.
