Mortgage interest deduction buying and selling primary homes

[vktt]

1. Bought a condo in Sep 2021 with $361k of original mortgage amount

2. Bought a SFH in Dec 2023 with a mortgage of $535k

3. Moved into SFH in Jan 2024 and put the condo on the market for sale in Feb 2024, which eventually sold in June 2024 (loan balance was about $340k)

4. Refinanced SFH mortgage in Oct by adding $140k to the balance (so the loan amount was $435k)

Question: Can I deduct interest on the condo from Jan - June 2024 and SFH for the whole year?

[KrisD15]

No, your loan balance in January-June was over the 750,000 limit.

Additionally, when you refinanced the SFH and added 140,000  to the balance, unless that 140,000 was used to improve the home, the interest on your refinanced loan will be limited to only the portion on the original amount. 

IRS Pub 936

[vktt]

Thanks for your reply.

I get that the total mortgage balance between two homes was >$750,000, but my main question was if I could even have two "primary home" mortgage interests deducted when one of them was sitting empty and waiting to be sold. 

[AmyC]

Yes, you can have two primary homes. People move or have a vacation home so the mortgage interest is allowed on your primary and secondary home.

Reference:

About Publication 936, Home Mortgage Interest Deduction