Yes, you can claim mortgage interest on a second home or vacation home as long as the total debt for the two homes is $1 million or less.
Interest on a third home is nondeductible personal interest unless the home is a business or investment property.
To
enter interest on your home loans, please follow these steps:
- Click on Federal Taxes >
Deductions & Credits.
- In the Your Home section,
click on the Start/Revisit box next to Mortgage Interest,
Refinancing, and Insurance. [See Screenshot #1, below.]
- If you haven't entered any
mortgage information yet, just proceed through the screens, entering the
requested information on your first mortgage. When finished, you
will be brought to the Mortgage Deduction summary screen.
- If you've already entered
information on one loan, you will be brought to the Mortgage deduction
summary screen. Click the Add a Lender box on the Mortgage
deduction summary screen. [Screenshot #2]
- Proceed through the screens,
entering the requested information.
- Your will be brought back to the Mortgage
deduction summary again.
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