oneof15
Returning Member

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

Home #1: bought Dec 2014. Moved out Jul 2017. On market Oct 2017. Sold Jan 2018. Paid real estate taxes and mortgage interest.

Home #2: 2nd home/vacation home. Bought Oct 1016. We still own it. Paid RE taxes and HELOC interest.

Home #3: bought Dec 2017. It is our current primary home. Paid RE taxes (prorated at closing), prepaid interest and VA funding fee (Mortgage Insurance Premium on form 1098).

Ownership of Homes #1 and #3 (both primary) overlapped by about 13 days (end of December 2017). Do we prorate the interest on Home #1 through closing of Home #3?

Do we deduct all the RE taxes on all 3 homes or must we prorate one?