Hal_Al
Level 15

Deductions & credits

Q. Am I able to deduct mortgage interest from my personal income (ie treat it as a second home for tax purposes) or does my selection on the affidavit of occupancy preclude this?

A. No, if it is investment property.  Yes, if it is a second home. 

 

But, I'm not a lawyer, and a definitive answer may require one. 

 

Your intent is as an investment and that may be good for the mortgage application.  For tax purposes, it appears you have a 2nd home, because you have personal use (a close family member lives there).  When it comes time to sell, a gain will be taxed at capital gains rate. But if there is a loss, the personal use rule precludes you from deducting that loss.