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# How do I calculate mortgage interest deduction for two homes?

I own two homes and want to double check my interest deduction limit calc i correct.

Home 1 avg outstanding balance was \$500,000. Home 1 interest paid was \$16,000.

Home 2 avg outstanding balance was \$1.4mm. Interest paid was \$55,000.

What is the correct way to calculate my limit? Both properties were purchased after 2017, so limit is \$750k.

Do you do properties individually? Or do I combine -- for example, combined Total Balance = \$1.9mm (500k+1.4mm)  -- divide this into the limit 750k gives 39%.   Now, 39%*\$71,000 (total interest paid) = \$27,690., which is my max deductible amount.
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Expert Alumni

## How do I calculate mortgage interest deduction for two homes?

The combined mortgage interest is taken as a percentage.  You have it correct in the second example.

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Expert Alumni

## How do I calculate mortgage interest deduction for two homes?

The combined mortgage interest is taken as a percentage.  You have it correct in the second example.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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