I have a primary mortgage of $640k and $30k of deductible interest. I have a secondary home used only for personal purposes with a mortgage of $760k and $20k of deductible interest. When I input my primary home’s mortgage interest of $30k, my tax liability is $20k. When I input my secondary homes mortgage interest of $20k, my tax liability actually increases to $22k, even though I should be allowed up to $750k in mortgage debt between the two loans.
Can anyone explain why my tax liability is increasing? TY.
