Although you do have to enter the 1098s for both your main and second home, it is permissible to not include the mortgage interest for the second home as part of your qualified residence interest by selecting the 'this loan is not secured by my home' option. If your second home is used for business or as a rental, you can still deduct business or rental interest expenses. Be aware that once you choose to treat your second home as not secured, you can't easily go back. It remains in affect for the years going forward.
The mortgage deduction is limited to $750K for this year and next year but is scheduled to go back to $1.1M in 2026 which means your deduction will be greater in the years after 2025. Or course, who knows what changes to the tax regulations will take place between now and then.
