topic Mortgage Interest Deduction for Two Homes in Deductions & credits

Mortgage Interest Deduction for Two Homes

jdlr1025 — Mon, 09 Mar 2026 09:01:18 GMT

Hello. I have two homes, my primary residence and a second home that is not a rental. Can I deduct the mortgage interest from both mortgages? My primary residence mortgage balance is $735K, and the second home mortgage balance is $631K. Thank you

Re: Mortgage Interest Deduction for Two Homes

RaifH — Sat, 05 Mar 2022 22:46:15 GMT

Yes, you can include the mortgage interest and property taxes from both of your homes. However, the deduction for mortgage interest starts to be limited at either $750,000 or $1 million depending on how long you have had the loan. TurboTax will calculate your mortgage interest deduction after you enter both of the 1098s. To determine your average balance on both loans, TurboTax will also ask for the outstanding balance as of January 1, 2022.

Also, you may not deduct more than $10,000 in total taxes paid for property taxes and income or sales tax.

Re: Mortgage Interest Deduction for Two Homes

Mike9241 — Sun, 06 Mar 2022 01:02:02 GMT

also if either or both mortgages are refi's the amount deductible is even more limited. usually to the principal balance when refinanced unless the cash out was used for improvements to the property but still limited to a cap of $750K or $1000k

Re: Mortgage Interest Deduction for Two Homes

jdlr1025 — Sun, 06 Mar 2022 01:55:28 GMT

Thank you. And is the $750K cap for the combined total of both mortgages or for each mortgage? In my case, both mortgages combined total over $1.3 million, but separately they are both under $750K.

Re: Mortgage Interest Deduction for Two Homes

jdlr1025 — Sun, 06 Mar 2022 01:57:01 GMT

And is the $750K cap for the combined total of both mortgages or for each mortgage? In my case, both mortgages combined total over $1.3 million, but separately they are both under $750K.

Re: Mortgage Interest Deduction for Two Homes

JohnB5677 — Sun, 06 Mar 2022 20:45:55 GMT

Beginning in 2018, this limit is lowered to $750,000. Your deduction is limited to all mortgages used to buy, construct, or improve your first, and second home.

For tax years before 2018, you could deduct interest on home equity debt of up to $1,000,000

Also, see Deducting Mortgage Interest FAQ

Re: Mortgage Interest Deduction for Two Homes

PTH_4653 — Wed, 12 Jun 2024 02:27:48 GMT

Did you get an answer to 750k cap applying to combined mortgage balances or is the $750K limit on each house mortgage separately, so theoretically up to $1.5M total mortgage interest deductible if each house had a $750K mortgage. ???

Re: Mortgage Interest Deduction for Two Homes

Mike9241 — Wed, 12 Jun 2024 06:19:46 GMT

That's the initial cap on 2 personal residences. mortgage interest on a third is not deductible but you get to choose which 2.

however, there is wiggle room. IRS pub 936

say you buy a home in 2018 with a 500K mortgage. you buy a second home in 2019 with a mortgage of 270K. the average balance on both for 2019 is 750K. all interest is deductible because the average balance of the acquisition indebtedness for 2019 does not exceed 750K.