I own main home with unmarried friend. We are both on mortgage and both contribute to mortgage payments. I contribute 40%. My friend contributes 60%. Average value of loan is 600K.
In 2023, I purchased a second home with an average balance of 200K. I pay 100% of that mortgage and am sole owner of mortgage and property.
My question is how to determine if I am subject to 750K limit.
- Can I use 40% of 600K for main home and 100% for second home - which puts me below the 750K limit and therefore not limited or-
- Must I take 100% of 600K and 100% of 200K to determine my mortgage interest limitation.
