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oneof15
New Member

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

Home #1: bought Dec 2014. Moved out Jul 2017. On market Oct 2017. Sold Jan 2018. Paid real estate taxes and mortgage interest.

Home #2: 2nd home/vacation home. Bought Oct 1016. We still own it. Paid RE taxes and HELOC interest.

Home #3: bought Dec 2017. It is our current primary home. Paid RE taxes (prorated at closing), prepaid interest and VA funding fee (Mortgage Insurance Premium on form 1098).

Ownership of Homes #1 and #3 (both primary) overlapped by about 13 days (end of December 2017). Do we prorate the interest on Home #1 through closing of Home #3?

Do we deduct all the RE taxes on all 3 homes or must we prorate one?

8 Replies
Anonymous
Not applicable

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

while the you can normally deduct the mortgage interest on two homes,  there is a limitation on deductible interest  if the average balance for the period outstanding of the mortgages on the two are over $1 million and HELOC's  average  over $100,000  for the period outstanding.  TT does the calculations on the Mortgage Limitation Smart Worksheet.    

Hal_Al
Level 15

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

The real estate taxes, on all three properties, are deductible.

All three properties qualify for the mortgage interest deduction; so it is your choice which two your use.  

oneof15
New Member

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

deleted repost
oneof15
New Member

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

deleted repost
oneof15
New Member

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

Thank you. Can we choose to deduct mortgage interest on the two main homes during the time they were our main homes in 2017?

For example:

Home #3 (current main home) purchased Dec 19; 13 days of interest.

Home #1 sold in Jan 2018 but was main home at start of 2017 through Dec 18; 352 days of interest.
Anonymous
Not applicable

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

I would choose the two homes that give you the largest interest deduction.
TaxGuyBill
Level 9

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

Except for the 13 days of overlap, you can deduct all of the mortgage interest (assuming total mortgages are less than $1.1 million).  You can deduct the mortgage interest from (1) your Principal Residence, and (2) one other Residence.
oneof15
New Member

If we owned 3 homes in 2017 at the same time, how do we figure which two homes' mortgage interest to deduct? Do we deduct real estate taxes on all three?

Thank you! From what I've read, I don't see why someone could not deduct interest on many Principal Residences in one year - just not the same day(s).
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