I own a primary home, second home, and a third home which is an investment rental. For the state of Arkansas, is mortgage interest deductible for all 3 properties?

Turbo Tax is including the mortgage interest for all 3 on the state return, but the Arkansas instructions indicate that only the interest on the first 2 is deductible.

1494

Level 15

Apr 20, 2022 12:10:26 AM

you can deduct interest on your first home and your second home.

You get to choose which one is your second home.

Level 15

Apr 20, 2022 6:40:22 AM

The rental property is reported on SCH E, and there are no limits on SCH E. So you can claim interest for the primary residence and 2nd home on SCH A. The rental property would not be reported on SCH A at all, assuming the property was classified as a rental for the entire tax year, or since you purchased it, if acquired in 2021.

Returning Member

Apr 20, 2022 7:58:55 AM

I understand how it is treated on the Federal return. It is the state of Arkansas that I don't think the software is handling correctly.

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I own a primary home, second home, and a third home which is an investment rental. For the state of Arkansas, is mortgage interest deductible for all 3 properties?